Intraperiod Income Tax Allocation
Nephi Corporation reported the following income items before tax for the year 2008:
|
Income from continuing operations before income taxes |
$260,000 |
|
Loss from operations of a discontinued business component |
70,000 |
|
Gain from disposal of a business component |
40,000 |
|
Extraordinary gain |
110,000 |
The income tax rate is 35% on all items. Prepare the portion of the income statement beginning with Income from continuing operations before income taxes for the year ended December 31, 2008, after applying proper intraperiod income tax allocation procedures.