Lindall Corporation reported the following income statement items for the year ended December 31,2017:
Discontinued operations:
$\begin{array}{ll}
\text { Operating income } & 6,000 \
\text { Loss on disposal } & (50,000)
\end{array}$ All items above are shown before tax effects.Lindall Corporation is subject to a 25% tax rate.Assume income from continuing operations is $396,000.Show the correct presentation of these items on the income statement including earnings per share calculations.Assume 50,000 common shares and 5,000,$4 cumulative preferred shares were outstanding for the entire year.

Question

Lindall Corporation reported the following income statement items for the year ended December 31,2017:
Discontinued operations:
 $\begin{array}{ll}
\text { Operating income } & 6,000 \
\text { Loss on disposal } & (50,000)
\end{array}$ All items above are shown before tax effects.Lindall Corporation is subject to a 25% tax rate.Assume income from continuing operations is $396,000.Show the correct presentation of these items on the income statement including earnings per share calculations.Assume 50,000 common shares and 5,000,$4 cumulative preferred shares were outstanding for the entire year.

Quizplus · Accepted Answer

The Answer of Lindall Corporation reported the following income statement items for the year ended December 31,2017:
Discontinued operations:
 $\begin{array}{ll}
\text { Operating income } & 6,000 \
\text { Loss on disposal } & (50,000)
\end{array}$ All items above are shown before tax effects.Lindall Corporation is subject to a 25% tax rate.Assume income from continuing operations is $396,000.Show the correct presentation of these items on the income statement including earnings per share calculations.Assume 50,000 common shares and 5,000,$4 cumulative preferred shares were outstanding for the entire year.

Lindall Corporation Reported the Following Income Statement Items for the Year