Wakanda Corporation reports a multi-step income statement within its Form 10k. The below remaining multiple-choice questions are based on the below information related to Wakanda Corporation for the year ended December 31, 20XX. All amounts are pre-tax. The tax rate is 30%. NOT ALL AMOUNTS SHOULD BE USED. PLEASE THINK ABOUT WHAT BELONGS ON THE INCOME STATEMENT.

Charges for restructuring one of the divisions	$ 20,000
Comprehensive Income	47,000
Cost of goods sold	898,000
Property, plant and equipment	3,000
Depreciation & Amortization Expense	60,000
Gain on the sale of plant assets	10,000
Hurricane loss on plant	29,000
Income from Vibranium division for the current year	50,000
Legal costs incurred in sucessfully defending a patent	15,000
Loss on impairment of goodwill	17,000
Research & Development Expense	23,000
Salaries Expense	140,000
Sales Returns	50,000
Sales revenue	1,550,000
Utilities Expense	100,000

Other notes for the fiscal year:

* The hurricane was the first to affect the company in 10 years.

* 12/31, Wakanda sold its Vibranium division to Stark Industries for a gain of $50,000 before tax.

What is income from continuing operations?

A. 147,700

B. 156,100

C. 191,000

D. 145,600

How should Wakanda Corporation report the Vibranium division on the income statement?

A. $35,000 gain/ income, net of tax under “Discontinued Operations”

B. $70,000 gain/income, net of tax under “Discontinued Operations”

C. None of the above

D. $50,000 pretax gain/ income under “Other Gains/Losses”

Answer rating: 100% (QA)

Part 1 Income Statement Sales Revenue 155000000 Less Return... View the full answer