Partial income statement with an extraordinary item
Dil Corporation acquired 30 percent of the voting stock of Lar Company at book value on July 1, 2011. During 2013, Lar paid dividends of $160,000 and reported income of $500,000 as follows:
|
Income before extraordinary item |
$300,000 |
|
Extraordinary gain (tax credit from |
|
|
operating loss carryforward) |
200,000 |
|
Net income |
$500,000 |
REQUIRED: Show how Dil’s income from Lar should be reported for 2013 by means of a partial income statement for Dil Corporation.