# Use the following information to compute income from continuing operations and net income. Assume that the income tax rate on

## Question:

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

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Related Book For

## Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

Question Details
Chapter # 4
Section: Practice Exercises
Problem: 13
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