At the Beginning of 2011,Jeffrey Company Disposed of a Segment

Essay

At the beginning of 2011,Jeffrey Company disposed of a segment of its business and incurred a pretax loss of $40,000 on the disposal.In the same year,a flood caused $15,000 of damages to the building.The flood damage qualified as an extraordinary item.Income from continuing operations before taxes was $100,000 for 2011 and a 20% tax rate applied to all of the items above.Prepare a partial income statement starting with income from continuing operations before taxes for the year ending 2011 and concluding with net income.