The Blues Corporation reported the following for the year ended December 31, 2011: Sales ...................$ 425,000 Cost

Question:

The Blues Corporation reported the following for the year ended December 31, 2011:

Sales ...................$ 425,000

Cost of goods sold.............. 185,000

Interest income ..............4,000

Gain on sale of equipment ..........6,000

Selling and administrative expenses........ 18,000

Interest expense ...............2,000

Extraordinary gain ..............23,000

Loss from discontinued segment operations ....(9,500)

Gain on disposal of discontinued segment .....34,000


Requirement

Assume the corporation is subject to a 30% tax rate. Prepare an income statement for the year ended December 31, 2011.


Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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