The income statement of tawls company for the year ended december 31,

The income statement of Tawls Company for the year ended December 31, 2012, shows the following:Revenue from sales $ 980,000Cost of products sold 510,000Gross profit 470,000Operating expenses:Selling expenses $110,000General expenses 140,000 250,000Operating income 220,000Equity on earnings of nonconsolidated subsidiary 60,000Operating income before income taxes 280,000Taxes related to operations 100,000Net income from operations 180,000Extraordinary loss from flood (lessapplicable taxes of $50,000) (120,000)Net income—noncontrolling interest (40,000)Net income $ 20,000a. Compute the net earnings remaining after removing nonrecurring items.b. Determine the earnings from the nonconsolidated subsidiary.c. For the subsidiary that was not consolidated, what amount of income would have been included if this subsidiary had been consolidated?d. What earnings relate to minority shareholders of a subsidiary that was consolidated?e. Determine the total tax amount.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *