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29 March, 22:30

The following are partial income statement account balances taken from the December 31, 2021, year-end trial balance of White and Sons, Inc.: restructuring costs, $470,000; interest revenue, $57,000; before-tax loss on discontinued operations, $570,000; and loss on sale of investments, $67,000. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with $885,000 income from continuing operations before income taxes. Include appropriate EPS disclosures. The company had 100,000 shares of common stock outstanding throughout the year. (Amounts to be deducted should be indicated with a minus sign. Round "EPS" answers to 2 decimal places.)

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  1. 30 March, 02:09
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    Answer and Explanation:

    White and Sons, Inc.

    Income Statement (lower portion)

    For the Year Ended December 31, 2021

    Income from continuing operations before income taxes $885,000

    Less: Income tax expense (25%) - $221,250

    Net income from continuing operations $663,750

    Discounted operations:

    Loss on discounted operations (Net of tax) - $427,500

    [570,000 - (570,000 x 25%) ]

    Net Income $236,250

    Earnings Per Share:

    Income from continuing operations $6.64

    ($663,750 / 100,000)

    Loss on discounted operations - $4.23

    ($427,500 / 100,000)

    Net Income $2.41
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