Dos Amugus Company has income from continuing operations of $621,000(after tax) for the year ended December 31, 2014. It also has the following items (before considering income taxes):
(1) An extraordinary fire loss of $120,000.
(2) A gain of $60,000 on the discontinuance of a major component.
(3) A cumulative effect of a change in accounting principle that resulted in an increase in prior years' depreciation of $50,000.
Assume all items are subject to income taxes at a 30% tax rate.
Instructions
Prepare an income statement, beginning with income from continuing operations.

Question

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The Answer of Dos Amugus Company has income from continuing operations of $621,000(after tax) for the year ended December 31, 2014. It also has the following items (before considering income taxes):
(1) An extraordinary fire loss of $120,000.
(2) A gain of $60,000 on the discontinuance of a major component.
(3) A cumulative effect of a change in accounting principle that resulted in an increase in prior years' depreciation of $50,000.
Assume all items are subject to income taxes at a 30% tax rate.
Instructions
Prepare an income statement, beginning with income from continuing operations.

Dos Amugus Company Has Income from Continuing Operations of $621,000(after