# create an income statement

B Corporation had Income from continuing operations of $800,000 (after taxes) in 2010, unadjusted. In addition, the following information, which has not been considered, is as follows. 1. In 2010, the company adopted the double declining-balance method of amortizing equipment. Prior to 2010, Hauser had used the straight-line method. The change decreases income for 2010 by$50,000 (pre-tax) and the cumulative effect of the change on prior years' income was a $200,000 (pre-tax) decrease. 2. A machine was sold for$140,000 cash during the year at a time when its book value was $100,000. (Amortization has been properly recorded.) The company often sells machinery of this type. 3. B Corp decided to discontinue its stereo division in 2010. During the current year, the loss on the disposal of the segment of the business was$150,000 less applicable taxes. Instructions -Present in good form the Income Statement of the Corporation for 2010 starting with "income from continuing operations, unadjusted." (\$800,000). Then deal with the 3 items above as required and complete the income statement. -tax rate is 20% and 100,000 shares of common stock were outstanding during the year. Show calculations separate from the Income Statement as your Income statement must be in Good Form which means it is to look as a formal statement would. Any calculations to arrive at these figures should be shown on a separate sheet, or on the bottom of the page and referenced to the Income Statement.