Cabell Inc. reported 'income from operations before taxes' in the amount of $402,000 before including the following items for the year ending December 31, 2017:
.On December 31, 2017, borrowed long-term debt of $50,000 that limits dividends to 10 percent of net income from continuing operations
.$21,000 unrealized gain from fair value adjustment related to available-for-sale investments
.$30,000 loss recognized on the sale of a trading security
.$58,000 loss recognized on a lawsuit relating to patent violations
.$11,000 government fine for environmental violation
.$63,000 write-down of obsolete inventory
.$25,000 loss on the disposal of a segment.
The company's income tax rate is 30 percent. No taxes have been considered in any information provided. Prepare a calculation of income from operations starting with income from operations before taxes, as tentatively reported. Omit the heading. Be sure to label correctly.

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The Answer of Cabell Inc. reported 'income from operations before taxes' in the amount of $402,000 before including the following items for the year ending December 31, 2017:
.On December 31, 2017, borrowed long-term debt of $50,000 that limits dividends to 10 percent of net income from continuing operations
.$21,000 unrealized gain from fair value adjustment related to available-for-sale investments
.$30,000 loss recognized on the sale of a trading security
.$58,000 loss recognized on a lawsuit relating to patent violations
.$11,000 government fine for environmental violation
.$63,000 write-down of obsolete inventory
.$25,000 loss on the disposal of a segment.
The company's income tax rate is 30 percent. No taxes have been considered in any information provided. Prepare a calculation of income from operations starting with income from operations before taxes, as tentatively reported. Omit the heading. Be sure to label correctly.