DUE in 20 mins accounting question (income from continuing operations)

Exam1ExtraCreditFa19.docx

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DUE: Wednesday, Oct. 9, 2019 at the beginning of class

Question 1 (5 points Extra Credit):

Anderson Corporation had income from operating activities of $452,789 (after taxes) in 2019 with an expected tax rate of 25%. Assume the calculation of income from continuing operations is correct and includes all relevant information. The company has the following information:

1. Land was sold for $200,000 cash during the year at a time when its book value was $150,000. Anderson Corporation regularly sells land of this type.

3. Anderson decided to discontinue its coffee maker division in 2019. They completed sale of this division on November 30, 2019 for $2,000,000. The division had a book value of $500,000. Up until the date of disposal, the division lost had lost $580,000 and had applicable tax benefits and credits of $320,000.

Present in good form the income statement of Anderson Corporation for 2019 starting at "income from continuing operations". Assume 250,000 shares of common stock were outstanding during the year. Round EPS items to two decimal places.

Income from continuing operations $452,789