Homework Answers
| Income from Continuing Operations | $800,000 | ||
| Discontinued Operations | |||
| Loss from operation of discontinued Tequila Division (net of tax) | 11200 | ||
| Gain from disposal of discontinued Tequila Division (net of tax) | 84000 | ||
| Net Income | 872800 | ||
In Scenario A, unrealized loss on Hedging Transactions will be included in ICO under Non-Operating Section because hedging transactions does not relates to the primary business of Desert, Co.
Add Answer to:
Agave Company decided on February 1st to dispose of its Tequila Distilling division. Agave sold the...
Question 1 1 pts Desert Company reported the following at December 31, 2019: Sales Revenue Cost...
Question 1 1 pts Desert Company reported the following at December 31, 2019: Sales Revenue Cost of Goods Sold $2,040,000 $1,400,000 $220,000 Operating Expenses Unrealized holding gain on AFS debt securities $120,000 Cash dividends received on the securities $8,000 For 2019, Desert would report Other Comprehensive Income of: $428,000 $420,000 $128,000 O $120,000 Question 2 1.5 pts Desert, Co. is preparing its 2019 financial statements. The company's accountant calculated Income from Continuing Operations to be $500,000, but upon further review...
Company inc. is preparing its financial statements. The company's accountant calculated Income from Continuing Operations to...
Company inc. is preparing its financial statements. The company's accountant calculated Income from Continuing Operations to be $500,000, but is not certain this number is accurate. Please review the following three scenarios and determine the appropriate adjustment to Income from Continuing Operations, if any, that is required for each item. All amounts listed are pre-tax unless otherwise noted. Corporate income tax rate is 30%. Scenario A: The Company has an unrealized loss on a Hedging Transaction of $10,000 (pre-tax). The...
Kelsy Company (Homework) Following are financial data for Kelsy Company for the year ended December 31,...
Kelsy Company (Homework) Following are financial data for Kelsy Company for the year ended December 31, 2020. Revenues and expenses: Continuing operations: Net sales revenue $1,950,000 Cost of goods sold. 510,000 Selling & administrative expenses 200,000 Interest income 10,000 Interest expense 50,000 Discontinued operations-Division X (Note A): Net sales revenue. 800,000 Cost of goods sold 700,000 Selling & administrative expenses 500,000 Other: Discontinued division phase-out loss (Note A). 250,000 Litigation loss (Note B). 100,000 Dividends declared (Note C). 220,000 Note...
The Culver Corporation had income from continuing operations of $13 million in 2020. During 2020, it...
The Culver Corporation had income from continuing operations of $13 million in 2020. During 2020, it disposed of its restaurant division at a loss of $80,000 (net of tax of $38,000). Before the disposal, the division operated at a loss of $220,000 (net of tax of $135,000) in 2020. Blue Collar also had an unrealized gain-OCI of $43,000 (net of tax of $18,000) related to its FV-OCI equity investments. Culver had 10 million common shares outstanding during 2020. Prepare a...
QUESTION 1 During 2020, Lopez Corporation disposed of Pine Division, a major component of its business,...
QUESTION 1 During 2020, Lopez Corporation disposed of Pine Division, a major component of its business, the company realized a gain of $3,000,000, net of taxes, on the sale of Pine's assets. Pine's operating losses, net of taxes, were $3,500,000 in 2020. How should these facts be reported in the company's income statement for 2020? Total Amount to be Included in Results of Discontinued Operations 3,500,000 loss $3,000,000 gain 0 500,000 loss Income from Continuing Operations 3,000,000 gain $3,500,000 loss...
For its fiscal year ending October 31, 2020, Haas Corporation reports the following partial data shown...
For its fiscal year ending October 31, 2020, Haas Corporation reports the following partial data shown below. Income before income taxes $505,000 Income tax expense (25% x $376,000) 94,000 Income from continuing operations 411,000 Loss on discontinued operations 129,000 Net income $282,000 The loss on discontinued operations was comprised of a $56,000 loss from operations and a $73,000 loss from disposal. The income tax rate is 25% on all items. (a) Prepare a correct statement of comprehensive income beginning with...
On October 5, 2020, Diamond in the Grouper Recruiting Group Inc.’s board of directors decided to...
On October 5, 2020, Diamond in the Grouper Recruiting Group Inc.’s board of directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately 79% of its income from its human resources management practice. The Blue Division gets contracts to perform human resources management on an outsourced basis. The board decided to dispose of the division because of unfavourable operating results. Net income for Diamond was $91,140 for the fiscal year ended December 31, 2020...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofita on December 15, 2018, at a price of $710,000. The book value of the division's assets was $1,230,000, resulting in a before-tax loss of $520,000 on the sale. ble, and on September 1, 2018, the company adopted a plan to sell the assets of the...
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...
V. Presentation of the Income Statement (16 points) The Raybum Company had income from continuing operations...
V. Presentation of the Income Statement (16 points) The Raybum Company had income from continuing operations before tax of $1,575,000 in 2014. Additional pre-tax transactions not included in the computation of the $1,575,000 are as follows: 1. In 2014, Rayburn decided to sell one of its manufacturing divisions, which qualifies as a discontinued operation for financial reporting purposes. On Nov. 1, 2014, the division assets were sold for $3,250,000. On the date of the sale, the division assets had a...
Question 1 1 pts Desert Company reported the following at December 31, 2019: Sales Revenue Cost of Goods Sold $2,040,000 $1,400,000 $220,000 Operating Expenses Unrealized holding gain on AFS debt securities $120,000 Cash dividends received on the securities $8,000 For 2019, Desert would report Other Comprehensive Income of: $428,000 $420,000 $128,000 O $120,000 Question 2 1.5 pts Desert, Co. is preparing its 2019 financial statements. The company's accountant calculated Income from Continuing Operations to be $500,000, but upon further review...
Kelsy Company (Homework) Following are financial data for Kelsy Company for the year ended December 31, 2020. Revenues and expenses: Continuing operations: Net sales revenue $1,950,000 Cost of goods sold. 510,000 Selling & administrative expenses 200,000 Interest income 10,000 Interest expense 50,000 Discontinued operations-Division X (Note A): Net sales revenue. 800,000 Cost of goods sold 700,000 Selling & administrative expenses 500,000 Other: Discontinued division phase-out loss (Note A). 250,000 Litigation loss (Note B). 100,000 Dividends declared (Note C). 220,000 Note...
QUESTION 1 During 2020, Lopez Corporation disposed of Pine Division, a major component of its business, the company realized a gain of $3,000,000, net of taxes, on the sale of Pine's assets. Pine's operating losses, net of taxes, were $3,500,000 in 2020. How should these facts be reported in the company's income statement for 2020? Total Amount to be Included in Results of Discontinued Operations 3,500,000 loss $3,000,000 gain 0 500,000 loss Income from Continuing Operations 3,000,000 gain $3,500,000 loss...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofita on December 15, 2018, at a price of $710,000. The book value of the division's assets was $1,230,000, resulting in a before-tax loss of $520,000 on the sale. ble, and on September 1, 2018, the company adopted a plan to sell the assets of the...
V. Presentation of the Income Statement (16 points) The Raybum Company had income from continuing operations before tax of $1,575,000 in 2014. Additional pre-tax transactions not included in the computation of the $1,575,000 are as follows: 1. In 2014, Rayburn decided to sell one of its manufacturing divisions, which qualifies as a discontinued operation for financial reporting purposes. On Nov. 1, 2014, the division assets were sold for $3,250,000. On the date of the sale, the division assets had a...
Most questions answered within 3 hours.
-
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 43 minutes ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 57 minutes ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 2 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 2 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 2 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 3 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 3 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 3 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 3 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 3 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 3 hours ago -
How do ECM Solutions assist in embedding a culture of continuous
improvement in an organization? (Project...
asked 3 hours ago