Given the Following Information About a Corporation's Current Year Activities,answer

question 20

Essay

Given the following information about a corporation's current year activities,answer the questions below:
$\begin{array}{|l|r|r|}\hline&\text { Debit } & \text { Credit }\\\hline \text { Sales } & & \$ 250,000 \\\hline \text { Cost of goods sold } & \$ 90,000 & \\\hline \text { Other operating expenses } & 54,000 & \\\hline \begin{array}{l}\text { Income from operation of discontinued Division W (net } \\\text { of } \$ 9.200 \mathrm{tax} \text { ) }\end{array} & & 30,800 \\\hline \begin{array}{l}\text { Extraordinary loss from hurricane damage (net of } \\\$ 11,000 \text { tax benefit) }\end{array} & 37,000 \\\hline \begin{array}{l}\text { Loss from disposal of Division W (net of } \$ 15,000 \operatorname{tax} \\\text { benefit) }\end{array} & 45,000 \\\hline \begin{array}{l}\text { Unusual loss on sale of equipment }\end{array} \\\hline \begin{array}{l}\text { Correction of error made in recording depreciation last } \\\text { year (net of } \$ 3,000 \text { tax) }\end{array} & 9,500 \\\hline \begin{array}{l}\text { Effect on prior years' income of changing depreciation } \\\text { methods (net of } \$ 4,000 \mathrm{tax} \text { ) }\end{array} & 13,500 \\\hline\end{array}$
Compute the amounts that should be reported on the income statement as:
(1)Income from continuing operations.
(2)Income before extraordinary items and cumulative effect of changes in accounting principles.
(3)Net income.

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