Baggow Styles provided the following partial-trial balance for the current year. Beginning with the line item Income from Continuing Operations Before Taxes, prepare a statement of net income for the year ended December 31. Baggow is subject to a 40% income tax rate

Baggow Styles
Partial Trial Balance (Selected Accounts)
For the Year Ended December 31

Accounts Debit Credit
Income from Continuing Operations Before Taxes $567,000
Interest Income 12,870
Gain from Discontinued Operations 44,700
Gain on Sale of Land 19,560
Unrealized Gain on Available-for-Sale Investments 41.920
Accumulated Depreciation on Assets from
Discontinued Operations 23,630

Loss on Pension Adjustment 29,510
Loss on Disposal of Discontinued Operations 13,440
Amortization of Intangible Asset 19,280
Unrealized Loss on Trading Investments 62,050

What will be an ideal response?

Answer: Baggow Styles
Statement of Net Income
For the year ended December 31

Income from Operations 567,000

Other Income, Gains, and Losses:
Dividend Income 12.870
Loss on Sale of Land 19,560
Unrealized Loss on Trading Investments (23,030)

Income from Continuing Operations before Taxes 537,380

Provision for Income Taxes (99,000 × 40%) (214,952)

Income from Continuing Operations 322,428

Discontinued Operations:
Gain from Discontinued Operations
[(1 - 40%) × 44,700)] 26,820
Loss from Disposal of Discontinued Operations
[(1 - 40%) × 13,440)] (8,064)
Net Income 322,428