Question

Concord Corporation had income from operations of $6,545,600. In addition, it suffered an unusual and infrequent pretax loss of $787,700 from a volcano eruption, interest revenue of $17,250, and a write-down on buildings of $49,730. The corporation’s tax rate is 30%. Prepare a partial income statement for Concord beginning with Income from operations. The corporation had 4,936,300 shares of common stock outstanding during 2020.

Answer 1

Answer and Explanation:

Income statement-Partial

Income from operation 6545600

Other revenue & gains

Interest revenue 17250

6562850

other expenses & losses

Loss due to volcano 787700

Impairment loss 49730

Income before income tax 5725420

income tax 1717626

Net income /loss 4007794

Per share common stock

Net income /loss 0.81

Earning per share

Earning per share common stock

Income from operation(6545600/4936300) 1.33

Non operating income

interest revenue (17250/4936300) 0.003

Income before extraordinary items 1.33

extraordinary loss

(787700+49730)/4936300 -0.17

Income tax expenses (1717626/4936300) -0.35

Net income 0.81