Gumble Corporation had income from continuing operations of $300,000 for the year ended December 31, 2010. It also had the following items (before income taxes):
1. Extraordinary flood loss of $120,000.
2. Loss of $50,000 on discontinuance of a division.
All items are subject to income taxes at a 30% tax rate.
Instructions
Prepare a partial income statement, beginning with income from continuing operations.

Question

Quizplus · Accepted Answer

The Answer of Gumble Corporation had income from continuing operations of $300,000 for the year ended December 31, 2010. It also had the following items (before income taxes):
1. Extraordinary flood loss of $120,000.
2. Loss of $50,000 on discontinuance of a division.
All items are subject to income taxes at a 30% tax rate.
Instructions
Prepare a partial income statement, beginning with income from continuing operations.

Gumble Corporation Had Income from Continuing Operations of $300,000 for the Year