The Following Information Was Taken from the Accounting Records of ABCO

question 17

Essay

The following information was taken from the accounting records of ABCO Corporation for the year ending December 31, 2017.
$\begin{array}{lr}\text { Cost of sales } & \$ 342,000 \\\text { Loss on sale of business segment } & 23,000 \\\text { Profit from operations of discontinued business segment } & 19,000 \\\text { Operating expenses } & 176,000 \\\text { Revenue from sales } & 690,000 \\\text { Number of shares of common stock outstanding } & 100,000 \\\text { Income tax rate } & 30 \% \\\text { Appropriated retained earnings for plant expansion } & 176,000 \\\text { Dividends } & 130,000 \\\text { Gain on sale of plant asset } & 24,000\end{array}$
A. In good form, prepare the section of the income statement that begins immediately under 'income from continuing operations'. Do not be concerned with calculating the amount reported as 'income from continuing operations.'
B. List all the items that would appear in the 'Other Revenue/Other Expenses' section of the income statement.
C. How is the number of shares of common stock outstanding used on the income statement?

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Definitions:

Archie B. Carroll

A business academic known for his work on corporate social responsibility and the pyramid model that outlines the four responsibilities of business: economic, legal, ethical, and philanthropic.

Situationally Ethical

An approach to ethics where moral decisions are made based on the specifics of the situation rather than fixed principles, which can lead to variability in ethical judgments.

Amoral

Lacking moral sensibility; not involving questions of right or wrong.

Rokeach's Survey

is a psychological assessment tool developed by Milton Rokeach that measures individual values and beliefs.