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Maulder Corporation has income from continuing operations of $290,000 for the year ended December 31, 2014. It also has the following items (before considering income taxes).
1. An extraordinary loss of $70,000.
2. A gain of $35,000 on the discontinuance of a division.
3. A correction of an error in last years’ financial statements that resulted in a $25,000 understatement of 2013 net income.
Assume all items are subject to income taxes at a 30% tax rate.
Instruction:
Prepare an income statement, beginning with income from continuing operations.
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