Problem 17-6AA Income statement computations and format LO A2 Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow.

		Debit			Credit
a.	Interest revenue				$	15,400
b.	Depreciation expenseEquipment	$	35,400
c.	Loss on sale of equipment		27,250
d.	Accounts payable					45,400
e.	Other operating expenses		107,800
f.	Accumulated depreciationEquipment					73,000
g.	Gain from settlement of lawsuit					45,400
h.	Accumulated depreciationBuildings					177,300
i.	Loss from operating a discontinued segment (pretax)		19,650
j.	Gain on insurance recovery of tornado damage					30,520
k.	Net sales					1,012,500
l.	Depreciation expenseBuildings		53,400
m.	Correction of overstatement of prior years sales (pretax)		17,400
n.	Gain on sale of discontinued segments assets (pretax)					41,000
o.	Loss from settlement of lawsuit		25,150
p.	Income tax expense		?
q.	Cost of goods sold		496,500

Problem 17-6AA Part 2

Assume that the companys income tax rate is 40% for all items. Compute the tax effects and after-tax amounts of the three items labeled pretax.

2a. What is the amount of income from continuing operations before income taxes? 2b. What is the amount of the income tax expense? 2c. What is the amount of income from continuing operations?

3. What is the total amount of after-tax income (loss) associated with the discontinued segment?

4. What is the amount of net income for the year?