Question: The income statement of Tawls Company for
The income statement of Tawls Company for the year ended December 31, 2012, shows the following:
Required
a. Compute the net earnings remaining after removing nonrecurring items.
b. Determine the earnings from the nonconsolidated subsidiary.
c. For the subsidiary that was not consolidated, what amount of income would have been included if this subsidiary had been consolidated?
d. What earnings relate to minority shareholders of a subsidiary that was consolidated?
e. Determine the total tax amount.
Transcribed Image Text:
$ 980,000 510,000 470,000 Revenue from sales Cost of products sold Gross profit Operating expenses: Selling expenses General expenses Operating income Equity on earnings of nonconsolidated subsidiary Operating income before income taxes Taxes related to operations Net income from operations Extraordinary loss from flood (less applicable taxes of $50,000) Net income-noncontrolling interest $110,000 140,000 250,000 220,000 60,000 280,000 100,000 180,000 (120,000) (40,000) $ 20,000 Net income
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