Question

Colfax Corporation's financial statements for the current year include the following: Income from continuing operations before tax $ 780,400 Income tax expense $ 84,000 Prior period adjustment (decrease in prior year net income, net of taxes) $ 125,800 Cash dividends paid to preferred stockholders $ 133,320 Gain from discontinued operations (net of taxes) $ 743,200 Non-recurring loss $ 188,400 On the basis of this information, net income for the current year is:

Answer 1

Answer:

$1,439,600 $780,400 − $84,000 + $743,200 = $1,439,600; the non-recurring loss is already included in income from continuing operations is the correct answer.

Explanation: