Addison Corporation reported the following income statement items for the year ended December 31,2017:
Discontinued operations:
$\begin{array}{l}
\text { Operating income }&15,000 \
\text { Loss on disposal }&(65,000)
\end{array}$ All items above are shown before tax effects.Addison Corporation is subject to a 35% tax rate.Assume income from continuing operations is $442,000.Show the correct presentation of these items on the income statement including earnings per share calculations.Assume 20,000 common shares and 5,000,$2 cumulative preferred shares were outstanding for the entire year.

Question

Addison Corporation reported the following income statement items for the year ended December 31,2017:
Discontinued operations:
 $\begin{array}{l}
\text { Operating income }&15,000 \
\text { Loss on disposal }&(65,000)
\end{array}$ All items above are shown before tax effects.Addison Corporation is subject to a 35% tax rate.Assume income from continuing operations is $442,000.Show the correct presentation of these items on the income statement including earnings per share calculations.Assume 20,000 common shares and 5,000,$2 cumulative preferred shares were outstanding for the entire year.

Quizplus · Accepted Answer

The Answer of Addison Corporation reported the following income statement items for the year ended December 31,2017:
Discontinued operations:
 $\begin{array}{l}
\text { Operating income }&15,000 \
\text { Loss on disposal }&(65,000)
\end{array}$ All items above are shown before tax effects.Addison Corporation is subject to a 35% tax rate.Assume income from continuing operations is $442,000.Show the correct presentation of these items on the income statement including earnings per share calculations.Assume 20,000 common shares and 5,000,$2 cumulative preferred shares were outstanding for the entire year.

Addison Corporation Reported the Following Income Statement Items for the Year