Paris Company reported the following items in its December 31, 2009, year-end adjusted trial balance:
Paris is subject to a 40% income tax rate.
Required: Prepare the December 31, 2009, income statement for Paris Company starting with income from continuing operations before income taxes.
$\begin{array}{lc}
\text { Income from continuing operations before income taxes } & \$ 320,000 \
\text { Extraordinary gain on disposal of non-operating assets } & 60,000 \
\text { Extraordinary flood loss } & (18,000)
\end{array}$

Question

Paris Company reported the following items in its December 31, 2009, year-end adjusted trial balance:
Paris is subject to a 40% income tax rate.
Required: Prepare the December 31, 2009, income statement for Paris Company starting with income from continuing operations before income taxes.
 $\begin{array}{lc}
\text { Income from continuing operations before income taxes } & \$ 320,000 \
\text { Extraordinary gain on disposal of non-operating assets } & 60,000 \
\text { Extraordinary flood loss } & (18,000)
\end{array}$

Quizplus · Accepted Answer

The Answer of Paris Company reported the following items in its December 31, 2009, year-end adjusted trial balance:
Paris is subject to a 40% income tax rate.
Required: Prepare the December 31, 2009, income statement for Paris Company starting with income from continuing operations before income taxes.
 $\begin{array}{lc}
\text { Income from continuing operations before income taxes } & \$ 320,000 \
\text { Extraordinary gain on disposal of non-operating assets } & 60,000 \
\text { Extraordinary flood loss } & (18,000)
\end{array}$

Paris Company Reported the Following Items in Its December 31