Question

Addison Corporation is currently going through a Chapter 11bankruptcy. The company has the following account balances for thecurrent year.

	Debit		Credit
Advertising expense	$	25,000
Costof goods sold		212,000
Depreciation expense		23,000
Interest expense		5,000
Interest revenue			$	33,000
Losson closing of branch		110,000
Professional fees		72,000
Rentexpense		17,000
Revenues				474,000
Salaries expense		71,000

Prepare an income statement for this organization. The effectivetax rate is 25 percent (realization of any tax benefits isanticipated). (Negative amounts under "Reorganizationitems" should be indicated by a minus sign.)

Revenues		474,000
Costs & Expenses:
COGS	212,000
Advertising Exp	25,000
Depreciation Exp	23,000
Interest Exp	5,000
Rent Exp	17,000
Salaries	71,000
		353,000
Earnings before reorganization items nd tax effects		121,000
Reorganization items:
Interest revenue	33,000
Professional Fees	(72,000)
Loss on closing of branch	(110,000)
		(149,000)
Loss before income tax benefit		(28,000)
Income Tax benefit		NEED ANSWER
Net Loss