Gain on redemption of bonds 1,150
Income tax:
Applicable to continuing operations
Applicable to loss from discontinued operations
Applicable to gain from redemption of bonds
247,509
100,000
150
Interest expense 778,266
Interest revenue 2,025
Loss from disposal of discontinued operations 250,000
HOW DO I REWRITE THIS INTO INCOME STATERMENT
To rewrite the given information into an income statement, you would need to organize the data into the relevant sections of the income statement, which include revenues, expenses, gains, and losses. Here's how you can do it:
1. Start with revenues:
- Interest revenue: $2,025
2. Then, move on to expenses:
- Interest expense: $778,266
3. Next, include gains and losses:
- Gain from redemption of bonds: $1,150
4. If there are any additional gains or losses, include them as well. In this case:
- Loss from disposal of discontinued operations: $250,000
5. Calculate the total income tax applicable to each category:
- Applicable to continuing operations: $247,509
- Applicable to loss from discontinued operations: $100,000
- Applicable to gain from redemption of bonds: $150
Now, let's put all the components together to create the income statement:
Income Statement
----------------------------------------------
Revenues:
Interest revenue $2,025
Expenses:
Interest expense $778,266
Gains:
Gain from redemption of bonds $1,150
Losses:
Loss from disposal of discontinued operations $250,000
----------------------------------------------
Income before income tax (add/subtract the above amounts)
Income tax:
Applicable to continuing operations $247,509
Applicable to loss from discontinued operations $100,000
Applicable to gain from redemption of bonds $150
----------------------------------------------
Net Income (Loss) (subtract the income tax amounts from the income before tax)
Please note that this is a simplified income statement based on the information provided. In practice, an income statement may include various other revenue and expense categories, such as operating revenues, cost of goods sold, and operating expenses.