Response to the following problem:
The income statement of Tawls Company for the year ended December 31, 2012, shows the following:
|
Revenue from sales Cost of products sold
Gross profit Operating expenses:
|
|
$ 980,000
510,000
|
|
470,000
|
|
Selling expenses
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$ I 10,000
|
|
|
General expenses
|
140,000
|
250,000
|
|
Operating income
|
|
220,000
|
|
Equity on earnings of nonconsolidated subsidiary
|
|
60,000
|
|
Operating income before income taxes
|
|
280,000
|
|
Taxes related to operations
|
|
100,000
|
|
Net income from operations
|
|
180,000
|
|
Extraordinary loss from flood (less applicable taxes of $50,000)
|
|
(120,000)
|
|
Net income-noncontrolling interest
|
|
(40,000)
|
|
Net income
|
|
$20,000
|
Required
a. 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.