Question

Marigold Corporation had income from operations of $6,331,000. In addition, it suffered an unusual and infrequent pretax loss of $787,500 from a volcano eruption, interest revenue of $16,900, and a write-down on buildings of $53,520. The corporation’s tax rate is 30%. Prepare a partial income statement for Marigold beginning with Income from operations. The corporation had 4,953,800 shares of common stock outstanding during 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Answer 1

Income from continuing operations
Income from operations before tax		6331000
Other revenue /(expense)
Interest revenue	16900
Write down on buildings	-53520
Total other income /(expense)		-36620
Income from continuing operations before tax		6294380
Less:Income tax expense (6294380*30%)		(1888314)
Income from continuing operations (net of tax)		4406066
Income from extraordinary items ,net of tax [-787500*(1-.30)]		-551250
Net income		3854816
Earning per share
Income from continuing operations [4406066/4953800]		$ .89
Income from extraordinary items [-551250/4953800]		$ - .11
Net income		$ .78