Problem 4-07 Your answer is partially correct. Try again Wade Corp. has 150,000 shares of common stock outstanding In 2020, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in the $1,210,000 are as follows 1. 2. In 2020, Wade Corp. sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000. The gain or loss is considered non-recurring The company discontinued operations of one of its subsidiaries during the current year at a loss of $190.000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $90,000 before taxes; the loss from disposal of the subsidiary was $100,000 before awes. An Internal audit discovered that amortization of intangible assets was understated by $35,000 (net of tax) in a prior period. The amount was charged against retained earnings The company recorded a non-recurring gain of $125,000 on the condemnation of some of its property (included in the $1,210,000). 3. 4. Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share the 2 decimal places, eg. 1.47.) WADE CORP Income Statement (Partial) For the Year Ended December 31, 2020 erations Before Income Tax income taxe 22000 Income From Continuing Operations Discontinued Operations Los from Operations of Discontinued subsidiary Les 10 Lapplicatie Income Tax Reduction omal / Scary S5600 U 2000 592 Less Applicable Income Tax Reduction 18 62000 117800 Income From Continuing Operations T 626200 Discontinued Operations, Net of Tax Income From Continuing Operations Discontinued Operations, Net of Tax 75000 TU Net Income / (Loss) 701200 Click if you would like to Show Work for this question: Open Show Work