Tulsa Company has income before irregular items of $310,000 for the year endedDecember 31, 2012. It...

Question

Tulsa Company has income before irregular items of $310,000 for the year ended
December 31, 2012. It also has the following items (before considering income taxes):
(1) An extraordinary fire loss of $60,000 and
(2) A gain of $30,000 from the disposal of a division. Assume all items are subject to income taxes at a 30% tax rate.
Instructions
Prepare Tulsa Company’s income statement for 2012, beginning with ?oIncome before irregular items.??

Robert · Accepted Answer

SOLUTION
Tulsa's Income statement 
for the year ended 2012
Income before Irregular item
$310,000.00  
Add: Discontinued Operations: Gain 
from disposal of a division, (net of tax) 21000.00 
Extraordinary items : Fire loss (net of 
tax) (42000.00) 
Net Income
$289,000.00

Tulsa Company has income before irregular items of $310,000 for the year ended December 31, 2012. It also has the following items (before considering income taxes): (1) An extraordinary fire loss of...

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