Stellar, Inc. decided on January 1 to discontinue its telescope manufacturing division. On July 1, the...
Stellar, Inc. decided on January 1 to discontinue its telescope manufacturing division. On July 1, the division’s assets with a book value of $840,000 are sold for $600,000. Operating income from January 1 to June 30 for the division amounted to $130,000. Ignoring income taxes, what total amount should be reported on Stellar’s income statement for the current year under the caption, Discontinued Operations?
Homework Answers
Answer:
| Loss from sale of assets = Sale value - Book Value of assets = $600,000 - $840,000 = $240,000 Loss |
| Operating Income from division = $130,000 |
| Loss to be shown under the caption, Discontinued Operations = $130,000 - $240,000 = $110,000 Loss |
Add Answer to:
Stellar, Inc. decided on January 1 to discontinue its telescope
manufacturing division. On July 1, the...
Question 2. Turnbull Ltd. decided on January 1, 2017 to discontinue its plastic-making division. The division,...
Question 2. Turnbull Ltd. decided on January 1, 2017 to discontinue its plastic-making division. The division, properly identified as a reportable segment, was sold on June 1, 2017. Division assets with a carrying value of $1,600,000 were sold for $1,000,000. Operating income from January 1, to May 30, 2017 for the division amounted to $250,000. Income taxes are at the rate of 30%. Required: What amount should be reported on Turnbull's income statement for the year ended December 31, 2017...
The following information is related to Stellar Company for 2017. Retained earnings balance, January 1, 2017...
The following information is related to Stellar Company for
2017.
Retained earnings balance, January 1, 2017
$981,230
Sales Revenue
26,181,600
Cost of goods sold
16,144,500
Interest revenue
71,400
Selling and administrative expenses
4,762,000
Write-off of goodwill
836,600
Income taxes for 2017
1,343,100
Gain on the sale of investments
117,400
Loss due to flood damage
395,000
Loss on the disposition of the wholesale division (net of
tax)
449,000
Loss on operations of the wholesale division (net of tax)
97,610
Dividends declared...
On August 1, 2018, Rocket Retailers adopted a plan to discontinue its catalog sales division, which...
On August 1, 2018, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2019. On January 31, 2019, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2018–Jan. 31, 2019 $ 120,000 Estimated operating losses, Feb. 1–June 30, 2019 86,000 Impairment of...
Un August 1, 2021, Rocket Retailers adopted a plan to discontinue its catalog sales division, which...
Un August 1, 2021, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2022. On January 31, 2022, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2021-Jan. 31, 2022 Estimated operating losses, Feb. 1-June 30, 2022 Impairment of division assets at...
m) Each o esces On August 1, 2016, Rocket Retailers adopted a plan to discontinue its...
m) Each o esces On August 1, 2016, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2017. On January 31, 2017, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2016-Jan. 31, 2017 Estimated operating losses, Feb. 1-June 30, 2017 Impairment...
During 2020, Door Inc. decided to dispose of Bell Division, considered a separate reportable segment. Door...
During 2020, Door Inc. decided to dispose of Bell Division, considered a separate reportable segment. Door estimates it can sell Bell at a loss of $30,000, which it does on May 1, 2020. Bell’s operating income from January 1 to April 30 was $23,000. Ignoring taxes, and assuming statements are prepared under ASPE, the discontinued operations section of Door’s income statement for the year ended December 31, 2020 should report the $23,000 operating income and the $30,000 loss in the...
Marigold Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Marigold sold the wholesale operations to Rogers Company. During 2020, there were 50
The following information is related to Marigold Company for 2020.Retained earnings balance, January 1, 2020$940,800Sales Revenue24,000,000Cost of goods sold15,360,000Interest revenue67,200Selling and administrative expenses4,512,000Write-off of goodwill787,200Income taxes for 20201,194,240Gain on the sale of investments105,600Loss due to flood damage374,400Loss on the disposition of the wholesale division (net of tax)422,400Loss on operations of the wholesale division (net of tax)86,400Dividends declared on common stock240,000Dividends declared on preferred stock76,800Marigold Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On...
On August 1, 20x1, Desert, Inc. adopted a plan to discontinue its children's clothing division, which...
On August 1, 20x1, Desert, Inc. adopted a plan to discontinue its children's clothing division, which qualifies as a component of the business according to GAAP. The disposal of the division was expected to be concluded by March 30, 20x2. On December 31, 20x1, Desert's fiscal year-end, the following information relative to the discontinued operation was accumulated: Operating Income (pre-tax) of the Component for Jan 1 - Dec 31, 20x1 S 658,000 Net Book Value of the Component at Dec...
Help Save & Exit Submit On August 1, 2021, Rocket Retailers adopted a plan to discontinue...
Help Save & Exit Submit On August 1, 2021, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2022. On January 31, 2022, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2021-Jan. 31, 2022 Estimated operating losses, Feb. 1-June 30, 2022...
Agave Company decided on February 1st to dispose of its Tequila Distilling division. Agave sold the...
Agave Company decided on February 1st to dispose of its Tequila Distilling division. Agave sold the Tequila Division on September 1st for a sales price of $440,000 but had to pay $20,000 in sales commissions. At the time of the sale, the division had a book value of $300,000. In the time between February 1st and September 1st, the Tequila division reported a loss from operations of $16,000. Agave Company has a tax rate of 30%. Starting with Income from...
Question 2. Turnbull Ltd. decided on January 1, 2017 to discontinue its plastic-making division. The division, properly identified as a reportable segment, was sold on June 1, 2017. Division assets with a carrying value of $1,600,000 were sold for $1,000,000. Operating income from January 1, to May 30, 2017 for the division amounted to $250,000. Income taxes are at the rate of 30%. Required: What amount should be reported on Turnbull's income statement for the year ended December 31, 2017...
The following information is related to Stellar Company for
2017.
Retained earnings balance, January 1, 2017
$981,230
Sales Revenue
26,181,600
Cost of goods sold
16,144,500
Interest revenue
71,400
Selling and administrative expenses
4,762,000
Write-off of goodwill
836,600
Income taxes for 2017
1,343,100
Gain on the sale of investments
117,400
Loss due to flood damage
395,000
Loss on the disposition of the wholesale division (net of
tax)
449,000
Loss on operations of the wholesale division (net of tax)
97,610
Dividends declared...
Un August 1, 2021, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2022. On January 31, 2022, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2021-Jan. 31, 2022 Estimated operating losses, Feb. 1-June 30, 2022 Impairment of division assets at...
m) Each o esces On August 1, 2016, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2017. On January 31, 2017, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2016-Jan. 31, 2017 Estimated operating losses, Feb. 1-June 30, 2017 Impairment...
On August 1, 20x1, Desert, Inc. adopted a plan to discontinue its children's clothing division, which qualifies as a component of the business according to GAAP. The disposal of the division was expected to be concluded by March 30, 20x2. On December 31, 20x1, Desert's fiscal year-end, the following information relative to the discontinued operation was accumulated: Operating Income (pre-tax) of the Component for Jan 1 - Dec 31, 20x1 S 658,000 Net Book Value of the Component at Dec...
Help Save & Exit Submit On August 1, 2021, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2022. On January 31, 2022, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2021-Jan. 31, 2022 Estimated operating losses, Feb. 1-June 30, 2022...
Agave Company decided on February 1st to dispose of its Tequila Distilling division. Agave sold the Tequila Division on September 1st for a sales price of $440,000 but had to pay $20,000 in sales commissions. At the time of the sale, the division had a book value of $300,000. In the time between February 1st and September 1st, the Tequila division reported a loss from operations of $16,000. Agave Company has a tax rate of 30%. Starting with Income from...
Most questions answered within 3 hours.
-
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 8 minutes ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 32 minutes ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 1 hour ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 1 hour ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 1 hour ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 1 hour ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 1 hour ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 2 hours ago -
The manufacturers of Oriental Spice Sauce are concerned that the
sodium levels in their product vary...
asked 3 hours ago -
PLEASE DON'T ANSWER IF YOU CAN'T ANSWER ALL OF THE QUESTIONS. I
DESPERATELY NEED HELP
Consider...
asked 3 hours ago -
DO NOT ANSWER IF YOU ARE UNSKILLED IN THIS AREA! TYPE OR WRITE
EACH ANSWER CLEARLY!!...
asked 3 hours ago -
how many moles of sodium are there in 3.41 moles of the
following compounds
NaCl
Na2SO4...
asked 3 hours ago