Answer Happy

Required information [The following information applies to the questions displayed below.] Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Assume that the company's income tax rate is 30% for all items. Debit Credit $ 14,000 Interest revenue b. Depreciation expense-Equipment $ 34,000 c. Loss on sale of equipment 25,850 d. Accounts payable 44,000 e. Other operating expenses 106,400 f. Accumulated depreciation-Equipment 71,600 g. Gain from settlement of lawsuit 44,000 h. Accumulated depreciation-Buildings 174,500 i. Loss from operating a discontinued segment (pretax) 18,250 j. Gain on insurance recovery of tornado damage 20,000 k. Net sales 998,000 1. Depreciation expense-Buildings 52,000 m. Correction of overstatement of prior year's sales (pretax) 16,000 n. Gain on sale of discontinued segment's assets (pretax) 34,000 0. Loss from settlement of lawsuit 23,250 ? p. Income tax expense q. Cost of goods sold 482,500 Required: 1. Compute the tax effects and after-tax amounts of the three items labeled pretax. Pretax 30% Tax Effect Loss from operating a discontinued segment Correction of overstatement of prior year's sales Gain on sale of discontinued segment's assets After-Tax