Homework Answers
Solution :-
Income statement :-
|
CULLUMBER CORP. INCOME STATEMENT (PARTIAL) FOR THE YEAR ENDED 2017 |
|||
| Income from continuing operations before tax |
= $1,221,100 - [ 81,900 - 34,800 -36,200 ] = $1,221,100 - $10,900 = $1,210,200 |
||
| Income Tax |
= $1,210,200 * 38% = $459,876 |
||
| Income from continuing operations |
= $1,210,200 - $459,876 = $750,324 |
||
| Discontinued Operations : | |||
| Loss from operations of discontinued subsidiary |
$92,300 |
||
| Applicable income tax reduction |
= $92,300 * 38% = $35,074 |
= $92,300 - $35,074 = $57,226 |
|
| Loss from disposal of subsidiary |
$99,200 |
||
| Applicable income tax reduction |
= $99,200 * 38% = $37,696 |
= $99,200 - $37,696 = $61,504 |
|
| Loss from discontinued operations (net of tax) |
= $57,226 + $61,504 = $118,730 |
||
| Income before extraordinary item |
= $750,324 - $118,730 = $631,594 |
||
| Extraordinary Item: | |||
| Gain on condemnation | $125,500 | ||
| Applicable tax |
= 125,500 * 38% = $47,690 |
||
| Extraordinary gain ( net of tax ) |
= $125,500 - $47,690 = $77,810 |
||
| Net Income |
= $631,594 + $77,810 = $709,404 |
||
| Per Share of Common Stock: | |||
| Income from continuing operations |
= $750,324 / 149,910 shares = $5.01 |
||
| Loss from discontinued operations (net of tax) |
= $118,730 /149,910 shares = $0.82 |
||
| Income before extraordinary item |
= $631,594 / 149,910 shares = $4.21 |
||
| Extraordinary Gain (net of tax) |
= $77,810 / 149,910 shares = $0.512 |
||
| Net Income |
= $709,404 / 149,910 shares = $4.73 |
||
Add Answer to:
Problem 4-7 Cullumber Corp. has 149,910 shares of common stock outstanding. In 2017, the company reports...
Your answer is partially correct. Try again. Cullumber Corp. has 149,910 shares of common stock outstanding....
Your answer is partially correct. Try again. Cullumber Corp. has 149,910 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,221,100. Additional transactions not considered in the $1,221,100 are as follows. 1. In 2017, Cullumber Corp. sold equipment for $36,200. The machine had originally cost $81,900 and had accumulated depreciation of $34,800. The gain or loss is considered non-recurring. The company discontinued operations of one of its subsidiaries during the current...
Your answer is partially correct. Try agairn. Cullumber Corp. has 149,910 shares of common stock outstanding....
Your answer is partially correct. Try agairn. Cullumber Corp. has 149,910 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,221,100. Additional transactions not considered in the $1,221,100 are as follows. 1. In 2017, Cullumber Corp. sold equipment for $36,200. The machine had originally cost $81,900 and had accumulated depreciation of $34,800. The gain or loss is considered non-recurring 2. The company discontinued operations of one of its subsidiaries during the...
1. In 2017, Cullumber Corp. sold equipment for $36,200. The machine had originally cost $81,900 and...
1. In 2017, Cullumber Corp. sold equipment for $36,200. The machine had originally cost $81,900 and had accumulated depreciation of $34,800. The gain or loss is considered non-recurring. 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $191,500 before taxes. Assume that this transaction meets the criteria for discontinued operations. 3. An internal audit discovered that amortization of intangible assets was understated by $39,200 (net of tax) in a prior period....
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Wade Corp. has 150,000 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in the $1,210,000 are as 1. In 2017, Wade Corp. sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000. The gain or loss is considered non-recurring. 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,000 before...
Please help Problem 4-7 Bridgeport Corp. has 150,240 shares of common stock outstanding. In 2017, the...
Please help
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had originally cost $80,700 and had accumulated depreciation of
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Your answer is partially correct. Try again. Cullumber Corp. has 149,910 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,221,100. Additional transactions not considered in the $1,221,100 are as follows. 1. In 2017, Cullumber Corp. sold equipment for $36,200. The machine had originally cost $81,900 and had accumulated depreciation of $34,800. The gain or loss is considered non-recurring. The company discontinued operations of one of its subsidiaries during the current...
Your answer is partially correct. Try agairn. Cullumber Corp. has 149,910 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,221,100. Additional transactions not considered in the $1,221,100 are as follows. 1. In 2017, Cullumber Corp. sold equipment for $36,200. The machine had originally cost $81,900 and had accumulated depreciation of $34,800. The gain or loss is considered non-recurring 2. The company discontinued operations of one of its subsidiaries during the...
1. In 2017, Cullumber Corp. sold equipment for $36,200. The machine had originally cost $81,900 and had accumulated depreciation of $34,800. The gain or loss is considered non-recurring. 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $191,500 before taxes. Assume that this transaction meets the criteria for discontinued operations. 3. An internal audit discovered that amortization of intangible assets was understated by $39,200 (net of tax) in a prior period....
Wade Corp. has 150,000 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in the $1,210,000 are as 1. In 2017, Wade Corp. sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000. The gain or loss is considered non-recurring. 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,000 before...
Please help
Problem 4-7 Bridgeport Corp. has 150,240 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,210,400. Additional transactions not considered in the $1,210,400 are as follows In 2017, Bridgeport Corp. sold equipment for $38,300. The machine had originally cost $83,600 and had accumulated depreciation of $31,900. The gain or loss is considered non-recurring. 1. The company discontinued operations criteria for discontinued operations. The loss from operations of the discontinued...
1. Concord Corp. has 150,240 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1.240,000. Additional transactions not considered in the $1.240,000 are as follows. In 2020, Concord Corp. sold equipment for $35,000. The machine had originally cost $84,900 and had accumulated depreciation of $31,700. The gain or loss is considered non-recurring. 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $194,900...
Novak Corp. has 149,380 shares of common stock outstanding. In
2020, the company reports income from continuing operations before
income tax of $1,215,800. Additional transactions not considered in
the $1,215,800 are as follows.
1.In 2020, Novak Corp. sold equipment for $38,600. The machine
had originally cost $80,700 and had accumulated depreciation of
$30,600. The gain or loss is considered non-recurring.
2.The company discontinued operations of one of its
subsidiaries during the current year at a loss of $196,800 before
taxes....
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