Question

1. On December 31, 2020, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $8 million. The business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $10 million. The loss from operations of the segment during 2020 was $6 million. Income from continuing operations before income taxes for the year totaled $12 million. The income tax rate is 25% Prepare the lower portion of the 2020 income statement beginning with pretax income from continuing operations. Include EPS disclosures, the company has ten million shares outstanding. (Amounts to be deducted and negative amounts should be indicated with brackets. Enter your answers in millions.) (18 points) REVOLUTIONARY INDUSTRIES Partial Income Statement Year ended December 31, 2020 Dollars in Millions Income from continuing operations before income taxes $ 12.0 Earnings per share:

Answer 1

REVOLUTIONARY INDUSTRIES
Partial Income statement
For the year ended December 31,2020
Income from continuing operations	12
Income tax expense [$12million *25%]	(3)
Income from continuing operations	9
Discontinued operations
Loss from operations of discontinued component [10 - 12 - 6]	(8)
Income tax benefit [$8million *25%]	2.00
Loss on discontinued operations	(6.00)
Net Income	3.00
Earnings per share
Income from continuing operations [$9million / 10million]	0.9
Loss on discontinued operations [-$6million / 10million]	(0.6)
Net income	0.3