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View Full Version : What is the amount of income from continuing operations before income taxes?


trina7416
Mar 1, 2017, 10:15 PM
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year end December 31, 2015, follow.




Debit
Credit


a.
Interest revenue





$
15,600



b.
Depreciation expense—Equipment.

$
35,600







c.
Loss on sale of equipment


27,450







d.
Accounts payable






45,600



e.
Other operating expenses


108,000







f.
Accumulated depreciation—Equipment






73,200



g.
Gain from settlement of lawsuit






45,600



h.
Accumulated depreciation—Buildings






177,700



i.
Loss from operating a discontinued segment (pretax)


19,850







j.
Gain on insurance recovery of tornado damage (pretax and extraordinary)






30,720



k.
Net sales






1,014,500



l.
Depreciation expense—Buildings


53,600







m.
Correction of overstatement of prior year’s sales (pretax)


17,600







n.
Gain on sale of discontinued segment’s assets (pretax)






42,000



o.
Loss from settlement of lawsuit


25,350







p.
Income taxes expense


?







q.
Cost of goods sold


498,500

















Required:
















How do I figure this out? I tried many different ways and keep coming up with the wrong answer. I am not looking for anyone to give me the answer just how to figure it out.

paraclete
Mar 3, 2017, 11:28 PM
What items are one off or non operational?