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.

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The Answer of 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.