Presented below are selected ledger accounts of Tucker Corporation as of\nDecember 31, 2014.\nCash $ 50,000\nAdministrative expenses 100,000\nSelling expe
Presented below are selected ledger accounts of Tucker Corporation as of
\r\nDecember 31, 2014.
\r\nCash $ 50,000
\r\nAdministrative expenses 100,000
\r\nSelling expenses 80,000
\r\nNet sales 540,000
\r\nCost of goods sold 210,000
\r\nCash dividends declared (2014) 20,000
\r\nCash dividends paid (2014) 15,000
\r\nDiscontinued operations (loss before income taxes) 40,000
\r\nDepreciation expense, not recorded in 2013 30,000
\r\nRetained earnings, December 31, 2013 90,000
\r\nEffective tax rate 30%
\r\nInstructions
\r\n(a) Compute net income for 2014.
\r\n(b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2014.