1. White Lightning Inc. reported income from continuing operations before income taxes of $626,000 for the year ended December 31, 2004. During October of 2004, White Lightning elected to phase out a segment of its business. That segment reported a net loss prior to the measurement date of $74,000. White Lightning expects to incur additional losses of $35,000 during the phase out period. Management estimates a loss on the sale of the assets associated with the segment of $85,000. The income tax rate for White Lightning is 30 percent. Prepare the portion of the income statement beginning with "income from continuing operations before income tax" for the year ended December 31, 2004.
Click here for the solution: White Lightning Inc. reported income from continuing operations before income taxes of $626,000 for the year ended December 31, 2004
