Molini Corporation reports the following partial data

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For its fiscal year ending October 31, 2008, Molini Corporation reports the following
partial data.

Income before income taxes	540,000
Income tax expense (30% x 390000)	117,000
Income before extraordinary items	423,000
Extraordinary loss from fl ood	150,000
Net income	273,000

The flood loss is considered an extraordinary item.The income tax rate is 30% on all items.

Instructions
(a) Prepare a correct income statement, beginning with income before income taxes.