Banks Corp

question 7

Essay

Banks Corp.reported net income of $595,000 in 2012.During 2012 Banks reported a loss of $87,435 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:

Greater Germany

A term historically associated with nationalist movements seeking the unification of all German-speaking peoples into a single nation-state, significantly influential in the lead-up to World War II.

Vichy Regime

The government of unoccupied France after its capitulation to Nazi Germany in 1940, headquartered in the town of Vichy.

Executive Order 9066

The United States presidential order signed during World War II that authorized the internment of tens of thousands of American citizens of Japanese ancestry and resident aliens from Japan.

Ethiopia

A country located in the Horn of Africa, known for its ancient culture, archaeological sites, and being one of the oldest locations of human existence.