Problem:
Canton Corporation reported the following items in its adjusted trial balance for the year ended December 31, 2011:
- Income from continuing operations before income taxes $110,000
- Extraordinary gain on property condemnsation 28,000
- Extraordinary loss on natural disaster (50,000)
- Canton is subject to a 30% tax rate.
Required:
Question: Prepare the December 31, 2011, income statement for Canton Corporation, starting with income from continuing operations before income taxes.
Note: Show supporting computations in good form.