Question

Concord Corporation had income from operations of $6,545,600. In addition, it suffered an unusual and infrequent pretax loss of $787,700 from a volcano eruption, interest revenue of $17,250, and a write-down on buildings of $49,730. The corporation’s tax rate is 30%. Prepare a partial income statement for Concord beginning with Income from operations. The corporation had 4,936,300 shares of common stock outstanding during 2020.

Answer 1

Answer and Explanation:

                               Income statement-Partial

Income from operation                                                 6545600

Other revenue & gains  

Interest revenue                                                          17250

                                                                                        6562850

other expenses & losses  

Loss due to volcano                                                   787700

Impairment loss                                                           49730

Income before income tax                                           5725420

income tax                                                                   1717626

Net income /loss                                                           4007794

Per share common stock  

Net income /loss                                                            0.81

Earning per share

Earning per share common stock

Income from operation(6545600/4936300)             1.33

Non operating income  

interest revenue (17250/4936300)                             0.003

Income before extraordinary items                              1.33

extraordinary loss  

(787700+49730)/4936300                                              -0.17

Income tax expenses (1717626/4936300)                       -0.35

Net income                                                                      0.81