Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2014.

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Question

Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2014. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash 
  
$50,000 
 
 
Administrative expenses 
  
100,000 
 
 
Selling expenses 
  
80,000 
 
 
Net sales 
  
540,000 
 
 
Cost of goods sold 
  
210,000 
 
 
Cash dividends declared (2014) 
  
20,000 
 
 
Cash dividends paid (2014) 
  
15,000 
 
 
Discontinued operations (loss before income taxes) 
  
40,000 
 
 
Depreciation expense, not recorded in 2013 
  
30,000 
 
 
Retained earnings, December 31, 2013 
  
90,000 
 
 
Effective tax rate 30% 
  
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)Compute net income for 2014. 
(b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2014.

David · Accepted Answer

a. 
Income Statement - 2014 
Items Amount ($) 
Net Sales 540,000 
COGS -210,000 
Gross Profit 330,000 
Depreciation Expense -30,000 
Administrative Expenses -100,000 
Selling Expenses -80,000 
Pre tax Income 120,000 
Loss from Discontinued Operation -40,

Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2014. Cash $50,000 Administrative expenses 100,000 Selling expenses 80,000 Net sales 540,000 Cost of goods sold...

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