Question

Save Homework: Ch5 - Additional Exercises Score: 0 of 1 pt BE5-12 (similar to) 1 of 4 (0 completo) HW Score: 0%, 0 of 4 pts Question Help The Bellingham Corporation sold its credit subsidiary on December 31 of the current year at again of $200. See below for the corporation's income statement before removing the discontinued subsidiary and before the inclusion of the gain on the sale of the subsidiary 1 (Cick the con lo view the corporation's income statement before removing the discontinued su and before the indlusion of the gain on the sale of the subsidiary) 0 Prepare Bolingham Corporation statement of net income for the current year reflecting the discontinued subdiary, assuming that it met all of the necessary conditions to be reported as a discontinued operation The discontinued subsidiary accounted for 2013. of revenues and 15% of all operating expenses. Use the any is subject to a 40% income tax Data Table - X o r a minus sign to enter any loss Oporaning Expenses SellingConeral and Administrative Expenses Depreciation and Amortization Expense Total Operating Ex Income From Continuing Operations Before Bellingham Corporation Statement of Net Income For the Year Ended December 31 Cost of Service Provided Gross Profit Selling General, and Administrative Expenses Depreciation and Amortization Expense Income before Tax Income Tax Expense (40%) Net Income 7.900 Choose from any list or enter any number in the input fields and then click Check Answer All parts showing S 4.778 Check Answer

Answer 1

Bargman Corporation Inc.
Income Statement
For the year ended December 31
Sales [($16,000 × (1.00-0.20)]	$12,800
Less: Cost of services provided [$12800 × ($6400 ÷ $16,000)]	($5,120)
Gross profit		$7,680
Operating expenses:
Selling, general and administrative expenses [($660 × (1.00 - .15)]	$561
Depreciation and Amortization expense [($980 × (1.00-.15)]	$833
Total operating expense		($1,394)
Income from continuing operations before tax		$6,286
Income tax $40 [$6286 × 40%]		($2,514.40)
Income from continuing operations		$3,771.60
Discontinued operations:
Income from discontinued operations, net of tax (W.N)		$704.40
Gain on disposal of discontinued operations, net of tax [($200 × (1.00-.40)]		$120
Net Income		$4,596.00

W.N
Sales revenue ($16,000 × 20%)	$3,200
Less: Cost of services provided ($6900 - $5120)	($1,780)
Gross profit	$1,420
Operating expense:
Selling, general and administrative expenses ($660 × 15%)	($99)
Depreciation and Amortization expense ($980 × 15%)	($147)
Income from discontinued operations before tax	$1,174
Income tax @40%	($469.60)
Income from discontinued operations, net of tax	$704.40