Venti Corporation had income from continuing operations of $420000 for the year ended December 31 2017. It also had the following item (before income taxes):
1. Loss of $50000 on discontinuance of a division.
All items are subject to income taxes at a 25% tax rate.
Instructions
Prepare a partial income statement beginning with income from continuing operations.

Question

Anand Aggarwal · Accepted Answer

Final Answer :   Income from continuing operations  $ 420 , 000  Discontinued operations   Loss on discontinued division, net of  $ 12 , 500  income tax savings  37 , 500  Net income  382 , 500 \begin{array}{llr}  	ext { Income from continuing operations }  & \$ 420,000\ 	ext { Discontinued operations }  & \ 	ext { Loss on discontinued division, net of   \$ 12,500   income tax savings }  & 37,500\ 	ext { Net income }  & 382,500\\end{array}  Income from continuing operations   Discontinued operations   Loss on discontinued division, net of $12 , 500 income tax savings   Net income  ​ $420 , 000 37 , 500 382 , 500 ​

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