Acc280 Financial Accounting: P14-9 The ledger of LaRussa Corporation at December 31

Acc280 Financial Accounting

P14-9
The ledger of LaRussa Corporation at December 31, 2010, contains the following summary data.
Net sales 1,700,000
Cost of goods sold 1,100,000
Selling expenses 120,000
Administrative expenses 150,000
Other revenues and gains 20,000
Other expenses and losses 28,000

Your analysis reveals the following additional information that is not included in the above data.
1.The entire puzzles division was discontinued on August 31. The income from operations for this division before income taxes was $20,000. The puzzles division was sold at a loss of $90,000 before income taxes.
2.On May 15, company property was expropriated for an interstate highway. The settlement resulted in an extraordinary gain of $120,000 before income taxes.
3.The income tax rate on all items is 30%.

Instructions
Complete the income statement for the year ended December 31, 2010. (Enter all amounts as positive amounts and subtract where necessary. List amounts from largest to smallest eg 10, 5, 3, 2.)
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