Cannon Corp., a textile manufacturer, reported net income of $258,000 in 2007. During 2007 Cannon reported a gain of $29,800 from the sale of three used delivery trucks. The gain was included as part of income from continuing operations. Assuming that the gain is a one-time event and that Cannon has an effective tax rate of 35% calculate Cannon's 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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The Answer of Cannon Corp., a textile manufacturer, reported net income of $258,000 in 2007. During 2007 Cannon reported a gain of $29,800 from the sale of three used delivery trucks. The gain was included as part of income from continuing operations. Assuming that the gain is a one-time event and that Cannon has an effective tax rate of 35% calculate Cannon's adjusted net income. Show all of your calculations for credit.
In addition, discuss why analysts might make an adjustment of this type.