Nash Corp, has 150,540 shares of common stock outstanding. In 2025, the company reports income from continuing operations
before income tax of $1,232,400. Additional transactions not considered in the $1,232,400 are as follows.
1.
In 2025, Nash Corp. sold equipment for $36,400. The machine had originally cost $80,700 and had accumulated depreciation
of $32,400. The gain or loss is considered non-recurring.
2.
The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,400 before taxes.
Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued
subsidiary was $91,400 before taxes; the loss from disposal of the subsidiary was $99,000 before taxes
3.
An internal audit discovered that amortization of intangible assets was understated by $37,700 (net of tax) in a prior period.
The amount was charged against retained earnings.
4.
The company recorded a non-recurring gain of $128,800 on the condemnation of some of its property (included in the
$1,232,400).
Analyze the above information and prepare an income statement for the year 2025, starting with income from continuing operations
before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective
tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, eg 1.47)
NASH CORP.
Income Statement (Partial)
For the Year Ended December 31, 2025
Income before Income Tax
Income Tax
Income from Continuing Operations
Discontinued Operations
Loss from Operations of Discontinued Subsidiary
Gain on Condemnation
Net Income/(Loss)
Earnings per Share
Income from Continuing Operations
Loss on Disposal of Discontinued Operations
Gain on Condemnation
Net Income/(Loss)
1220500
231895
988605
729081
6.57
1.00
5.54
4.65
