Buffalo Corporation had income from continuing operations of $12,500,000 in 2017.

During 2017, it disposed of its restaurant division at an after-tax loss of $212,000. Prior to disposal, the division operated at a loss of $473,000 (net of tax) in 2017 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation).

Buffalo had 10,000,000 shares of common stock outstanding during 2017. Prepare a partial income statement for Buffalo beginning with income from continuing operations. (Round earnings per share to 2 decimal places, e. g. 1.48.)

Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by bridgeport corporation. 1. bridgeport developed a new manufacturing process, incurring research and development costs of $195,600. the company also purchased a patent for $45,200. in early january, bridgeport capitalized $240,800 as the cost of the patents. patent amortization expense of $12,040 was recorded based on a 20-year useful life. 2. on july 1, 2017, bridgeport purchased a small company and as a result recorded goodwill of $52,000. bridgeport recorded a half-year’s amortization in 2017, based on a 20-year life ($1,300 amortization). the goodwill has an indefinite life. prepare all journal entries necessary to correct any errors made during 2017. assume the books have not yet been closed for 2017.