What is the best source of income for a corporation?
a. Prior period adjustments
b. Continuing operations
c. Extraordinary items
d. Discontinued operations
Jergens Lotion Company reports several earnings numbers on its current year income statement (parentheses indicate a loss):
|
Gross profit |
$ 140,000 |
Income from continuing operations |
$ 35,000 |
|
Net income |
41,000 |
Extraordinary gains |
14,000 |
|
Income before income tax |
60,000 |
Discontinued operations |
(8,000) |