AA
Answered
Venti Corporation had income from continuing operations of $420000 for the year ended December 31 2017. It also had the following item (before income taxes):
1. Loss of $50000 on discontinuance of a division.
All items are subject to income taxes at a 25% tax rate.
Instructions
Prepare a partial income statement beginning with income from continuing operations.
On Jul 12, 2024
Income from continuing operations $420,000 Discontinued operations Loss on discontinued division, net of $12,500 income tax savings 37,500 Net income 382,500\begin{array}{llr} \text { Income from continuing operations } &\$ 420,000\\ \text { Discontinued operations } &\\ \text { Loss on discontinued division, net of \( \$ 12,500 \) income tax savings } &37,500\\ \text { Net income } &382,500\\\end{array} Income from continuing operations Discontinued operations Loss on discontinued division, net of $12,500 income tax savings Net income $420,00037,500382,500