Problem 6- Canton Corporation reported the following items in its adjusted trial balance for the
year ended December 31, 2018:
Income from continuing operations before income taxes
Gain on disposal of discontinued component
Loss from operations of discontinued component
Canton is subject to a 30% tax rate.
$110,000
28,000
(50.000)
Required: Prepare the December 31, 2018, income statement for Canton Corporation, starting with
income from continuing operations before income taxes.
Canton Corporation.
Income Statement (partial)
For the year ended December 31, 2018
from continuing operations
income taxes
Income tax
from continuing operations
operations:
from operations of discontinued component
(including
)
Income tax
on discontinued operations
Net
Problem 7-Use this information to answer the following questions:
Plano Co. 12/31/2018
Partial Trial Balance Data
Sales revenue
Interest revenue
Gain on sale of investments
Cost of goods sold
Selling expenses
Interest expense
General and administrative expenses
700,000
60,000
110,000
500,000
150,000
30,000
100,000
Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been
accrued. The effective tax rate is 30%.
168) Required: Prepare a multiple-step income statement with earnings per share disclosure.
