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3. Canton Corporation reported the following items in its adjusted trial balance for the
year ended December 31, 2011:
Income from continuing operations before income taxes $110,000)
Extraordinary gain on property condemnsation 28,000)
Extraordinary loss on natural disaster (50,000)
Canton is subject to a 30% tax rate.
Required: Prepare the December 31, 2011, income statement for Canton Corporation,
starting with income from continuing operations before income taxes.
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