Acc557 Financial Accounting: E14-13 Maulder Corporation has income from continuing operations
Acc557 Financial Accounting
Exercise 14-13 Maulder Corporation has income from continuing operations of $290,000 for the year ended December 31, 2014. It also has the following items (before considering income taxes). 1. An extraordinary loss of $70,000. 2. A gain of $35,000 on the discontinuance of a division. 3. A correction of an error in last years' financial statements that resulted in a $25,000 understatement of 2013 net income. Assume all items are subject to income taxes at a 30% tax rate.
Instruction: Prepare an income statement, beginning with income from continuing operations.