Riegle Inc

Essay

Riegle Inc.'s income from continuing operations before taxes was $4,000,000 for the year ended December 31,2010.The company's effective tax rate is 30% and during the year the following events also took place:
The company sold one of its divisions at a gain of $500,000.The division had an operating loss of $325,000 through the date of disposal.
Riegle is located in Chicago and a small earthquake damaged a warehouse owned by the company.The amount of the uninsured loss was $575,000.
Required: Prepare the lower portion of the income statement,from "income from continuing operations before taxes" through "net income",for the year ended 12/31/10.All during 2010 1,000,000 shares of stock were authorized and 850,000 were issued and 800,000 were outstanding.