1. The events and transactions of Dever Corporation for the year ending December 31, 2012, resulted in the following data.
|
Cost of goods sold |
$2,600,000 |
|
Net sales |
4,400,000 |
|
Other expenses and losses |
9,600 |
|
Other revenues and gains |
5,600 |
|
Selling and administrative expenses |
1,100,000 |
|
Income from operations of plastics division |
70,000 |
|
Gain from disposal of plastics division |
500,000 |
|
Loss from tornado disaster (extraordinary loss) |
600,000 |
Analysis reveals that:
1. All items are before the applicable income tax rate of 30%.
2. The plastics division was sold on July 1.
All operating data for the plastics division have been segregated.