Dos Amugus Company Has Income from Continuing Operations of $621,000(after

question 44

Essay

Dos Amugus Company has income from continuing operations of $621,000(after tax) for the year ended December 31, 2014. It also has the following items (before considering income taxes):
(1) An extraordinary fire loss of $120,000.
(2) A gain of $60,000 on the discontinuance of a major component.
(3) A cumulative effect of a change in accounting principle that resulted in an increase in prior years' depreciation of $50,000.
Assume all items are subject to income taxes at a 30% tax rate.
Instructions
Prepare an income statement, beginning with income from continuing operations.

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Definitions:

Hemoglobin

A protein found in red blood cells responsible for transporting oxygen from the lungs to the rest of the body and carbon dioxide back to the lungs to be exhaled.

Mean Corpuscular Volume

A measure of the average volume of a red blood cell.

RBCs

Short for red blood cells, these are the cells in blood that carry oxygen from the lungs to the rest of the body and return carbon dioxide back to the lungs for exhalation.

Mixed Hemoglobinopathy

A blood disorder that includes characteristics of more than one type of hemoglobinopathy, affecting hemoglobin's structure or production.