Required information Problem 13-6AA Income statement computations and format LO A2 The following information applies to the questions displayed below) Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2017, follow. Debit Credit $ 15,280 $ 35,200 27,ese 45,20e 107,600 72,800 45,2ae 176,900 a. Interest revenue b. Depreciation expense-Equipment. C. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation Equipment B. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings 1. Loss from operating a discontinued segment (pretax) 1. Gain on insurance recovery of tornado damage k. Net sales 1. Depreciation expense-buildings 3. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit P. Income taxes expense 9. Cost of goods sold 19,456 30,320 1,010,5ee 53,269 17,200 4e,eee 24,950 494,500 Problem 13-6 Part 3 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? After-tax income from discontinued segment 12 Problem 13-6AA Income statement computations and format LO A2 The following information applies to the questions displayed below.) Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2017, follow Part 4 of 4 Debit $ Credit 15,200 $ 35,200 27,ese points 45,200 Skipped 107,600 72.000 45,200 176,900 a. Interest revenue b. Depreciation expense-Equipment. C. Loss on sale of equipment d. Accounts payable e. Other operating expenses 1. Accumulated depreciation Equipment E. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings 1. Loss from operating a discontinued segment (pretax) 3. Gain on Insurance recovery of tornado damage k. Net sales 1. Depreciation expense-Buildings 3. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax) 0. LOSS from settlement of lawsuit P. Income taxes expense 9. cost of goods sold 19,450 0,320 1,010, 500 53,200 17,200 40,000 24,950 494,500 References Problem 13-6 Part 4 4. What is the amount of net income for the year? Debit Credit 15,280 $ $ 35,00 27.050 45,260 Part 1 of 4 107,68e 72.800 45,200 176,988 a. Interest revenue b. Depreciation expense-Equipment. C. LOSs on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation Equipment R. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings 1. Loss from operating a discontinued segment (pretax) 3. Gain on insurance recovery of tornado damage k. Net sales 1. Depreciation expense-Buildings . Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segnent's assets (pretax) 0. Loss from settlement of lawsuit p. Income taxes expense 9. Cost of goods sold 19,450 38, 32e 1,010,560 53,200 17,200 40.000 24,95e 494,500 Problem 13-6 Part 1 Required: 1. Assume that the company's income tax rate is 30% for all items. Compute the tax effects and after-tax amounts of the three items labeled pretax Answer is complete and correct. LOSS from operating a discontinued segment Correction of overstatement of prior years Pretax 19,450 17,200 30% Tax Effect 5,835 5,160 After-Tax 13,615 12,040 Gain on sale of discontinued segment's 40,000 2,000 28,000 assets