An inexperienced accountant for CJS Transport Corporation showed the following in CJS Transport's 2014 income statement: income before income taxes $420,000; Extraordinary loss from tornado (before taxes) $60,000; and net income $132,000. The extraordinary loss and taxable income are both subject to a 30% tax rate.
Instructions
Prepare a corrected income statement beginning with "Income before income taxes."

Question

Quizplus · Accepted Answer

The Answer of An inexperienced accountant for CJS Transport Corporation showed the following in CJS Transport's 2014 income statement: income before income taxes $420,000; Extraordinary loss from tornado (before taxes) $60,000; and net income $132,000. The extraordinary loss and taxable income are both subject to a 30% tax rate.
Instructions
Prepare a corrected income statement beginning with "Income before income taxes."

An Inexperienced Accountant for CJS Transport Corporation Showed the Following