Banks Corp

question 44

Essay

Banks Corp.reported net income of $390,000 in 2012.During 2012 Banks reported a loss of $72,000 from a peripheral activity.The loss was included as part of income from continuing operations.Assuming that the loss is a one-time event and that Banks has an effective tax rate of 35% calculate Banks' adjusted net income.Show all of your calculations for credit.
In addition,discuss why analysts might make an adjustment of this type.

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Definitions:

Fraternal Twins

Siblings born from separate eggs fertilized by separate sperm cells, sharing 50% of their genetic material but born at the same time.

Concordance Rate

The probability that two individuals with shared genes will both display a particular trait or disorder, often used in twin studies.

Genetic Make-Up

The set of genes that an individual inherits from their parents, which determines one's characteristics and predispositions.

Postpartum Psychosis

A rare but severe mental illness that can affect a new mother following childbirth, characterized by extreme confusion, delusions, hallucinations, and, at times, risk of harm to oneself or the baby.