Yadier Corporation has income from continuing operations of $290,000 for the year
ended December 31, 2008. It also has the following items (before considering income taxes).
1. An extraordinary loss of $80,000.
2. A gain of $30,000 on the discontinuance of a division
3. A correction of an error in last year’s financial statements that resulted in a $20,000 understatement of 2007 net income.
Assume all items are subject to income taxes at a 30% tax rate.
Instructions
Prepare an income statement, beginning with income from continuing operations.
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