Question

The following are partial income statement account balances taken from the December 31, 2021, year-end trial balance of White and Sons, Inc.: restructuring costs, $310,000; interest revenue, $41,000; before-tax loss on discontinued operations, $410,000; and loss on sale of investments, $51,000. Income tax expense has not yet been recorded. The income tax rate is 25%.
 
Prepare the lower portion of the 2021 income statement beginning with $805,000 income from continuing operations before income taxes. Include appropriate EPS disclosures. The company had 150,000 shares of common stock outstanding throughout the year. (Amounts to be deducted should be indicated with a minus sign. Round "EPS" answers to 2 decimal places.)
  

Answer 1

   WHITE AND SONS, INC.

Partial Income Statement

For the Year Ended December 31,2021

PARTICULARS	AMOUNT(in $)
INCOME FROM CONTINUING OPERATIONS:
Income from continuing operations before income taxes	$805,000
Interest Revenue	$41,000
Restructuring costs	-$310,000
Loss on sale of investments	-$51,000
Income from continuing operations	$485,000
Income Tax	-$121,250
Net Income from Continuing Operations (A)	$363,750
Earning per share (continuing operations) ( $363,750 / 150,000 )	$2.43
INCOME/LOSS FROM DISCONTINUED OPERATIONS:
Before tax loss on discontinued operations	-$410,000
Tax savings on loss	$102,500
Net Loss from Discontinuing Operations (B)	-$307,500
Net Income (A+B)	$56,250