Use the following information to compute income from continuing operations and net income. Assume that the income tax rate on all items is 40%.
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,000
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400
Loss from an unusual but frequent event . . . . . . . . . . . . . . . . . . . . . . . . . . (3,000)
Selling and administrative expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,250
Loss from an unusual and infrequent event . . . . . . . . . . . . . . . . . . . . . . . . (800)
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Gain from a normal but infrequent event . . . . . . . . . . . . . . . . . . . . . . . . . . 1,350
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000