Gains and Losses on Extraordinary Items
Use the following information to compute income from continuing operations and net income. Assume that the income tax rate on all items is 40%.
|
Cost of goods sold |
$ 11,000 |
|
Interest expense |
2,100 |
|
Loss from an unusual but frequent event |
(1,000) |
|
Selling and administrative expense |
1,750 |
|
Loss from an unusual and infrequent event |
(400) |
|
Sales |
20,000 |
|
Gain from a normal but infrequent event |
1,250 |
|
Dividends |
700 |