Cahill & Sons earned before-tax income of $450,000 for its 2013 fiscal year. During the year the company experienced a $310,000 loss resulting from the expropriation of assets in a foreign country. The amount of the loss is material and the event is considered to be unusual and infrequent. The loss is not included in the $450,000 income figure. The company's income tax rate is 30%.
Required:
1. Prepare a partial 2013 income statement for Cahill starting with income before tax and any separately reported items.
2. Repeat requirement 1 assuming that Cahill prepares its financial statements according to International Financial Reporting Standards.

Question

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The Answer of Cahill & Sons earned before-tax income of $450,000 for its 2013 fiscal year. During the year the company experienced a $310,000 loss resulting from the expropriation of assets in a foreign country. The amount of the loss is material and the event is considered to be unusual and infrequent. The loss is not included in the $450,000 income figure. The company's income tax rate is 30%.
Required:
1. Prepare a partial 2013 income statement for Cahill starting with income before tax and any separately reported items.
2. Repeat requirement 1 assuming that Cahill prepares its financial statements according to International Financial Reporting Standards.

Cahill & Sons Earned Before-Tax Income of $450,000 for Its