Irregular Items on Income Statement
Not what you're looking for?
I'm trying to do an income statement with a lot of irregular items as transactions. I know where to some of them on the income statement but am having trouble figuring some out.
Info. income from continuing operations before taxes is $790,000, in 2007
1st : Uninsured flood loss in the amount of $80,000 (this is an extraordinary item, I know that) and it would go under the net income after I compute expenses ect, however it states tax rate on this item is 46% (on the flood loss) I thought extraordinary items got a tax deduction. So how do I compute the item with tax, or what do I do?
2nd At the beginning of 2005 the corp. purchases a machine for $54,00 (salv. val $9000) with a useful life of 6 years. The bookkeeper used straight-line dep. for 2005, 2006, and 2007 but failed to deduct the savage value in computing the depreciation base.
* I know that that gives a $1500 over depreciation expense for each year, how do I record this transaction on the income statement? Its a correction of error, but would have understate income previous years, right?
Purchase this Solution
Solution Summary
This solution explains how to identify irregular items on income statement sheets.
Solution Preview
1st : Uninsured flood loss in the amount of $80,000 (this is an extraordinary item, I know that) and it would go under the net income after I compute expenses however it states tax rate on this item is 46% (on the flood loss) I thought extraordinary items got a tax ...
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Motivation
This tests some key elements of major motivation theories.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.