The extraordinary loss and taxable income are both subject


An inexperienced accountant for Corfeld Corporation showed the following in Corfeld"s 2012 income statement: Income before income taxes $300,000; Income tax expense $72,000; Extraordinary loss from flood (before taxes) $80,000; and Net income $168,000. The extraordinary loss and taxable income are both subject to a 30% tax rate. Prepare a corrected income statement beginning with "Income before income taxes."

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Accounting Basics: The extraordinary loss and taxable income are both subject
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