Question

The following information was taken from the records of Concord Inc. for the year 2020: Income tax applicable to income from continuing operations $164,560; income tax applicable to loss on discontinued operations $22,440, and unrealized holding gain on available-for-sale securities (net of tax) $13,200.

Gain on sale of equipment		$83,600		Cash dividends declared		$132,000
Loss on discontinued operations		66,000		Retained earnings January 1, 2020		960,000
Administrative expenses		211,200		Cost of goods sold		748,000
Rent revenue		35,200		Selling expenses		264,000
Loss on write-down of inventory		52,800		Sales Revenue		1,672,000

Shares outstanding during 2020 were 100,000.

Answer 1

CONCORD INC INCOME STATEMENT For the year ended 31 december 2020
Revenue
Sales revenue	1672000
Rent revenue	35200
Gain on sale of equipment	83600
Total revenue		1790,800
expense
cost of goods sold	748000
selling expense	264000
Administrative expenses	211200
Loss on write-down of inventory	52800
Total expense		(1276000)
Income from continuing operations before tax		514,800
less:Income tax		(164560)
Income from continuing operations		350240
Discontinued operations
Loss on discontinued operations	(66000)
Add::Income tax savings	22440	(43,560)
Net Income		306,680
Earning per share
Income from continuing operations [350,240/100000]	3.5
Loss from discontinued operations [-43560/100000]	(.0.44)
Net Income [306680/10000]	3.06