Homework Answers
We have been asked to calculate the Income from Continuing operations
Continuing operations means the Income from Operations and any income or expenditure from non operating activities has to be excluded.
Hence , following activities shall be considered as non operating activities
1- Loss on sale of securities , held as portfolio
2 - Gain from Insurance Policy on death of president
3 - Disposal of recreational division
4 - Flood loss
| Computation of Income from Continuing operations before Taxes | |||||
| 790000 | |||||
| As computed | 9000 | Note 1 | |||
| Corrected | 7500 | ||||
| As restated | 1500 | ||||
| Income from Continuing operations before taxes | 791500 | ||||
| Note 1 - As computed | |||||
| Note 1 | |||||
| Machine purchased | 54000 | ||||
| Salvage value | 9000 | ||||
| Useful life | 6 years | ||||
| Depreciation | 9000 | ||||
| Depreciation | 7500 | ||||
| Computation of Income tax | |||
| Income from continuing operations before taxes | 791500 | ||
| Non taxable Income ( gain on life insurance ) | 104000 | ||
| Taxable Income | 791500 | ||
| Tax rate | 30% | ||
| Income tax | 237450 | ||
| Income from continuing operations after tax | 554050 | ||
| Number of Common stock shares | 120000 | ||
| EPS ( Earning per share ) | 4.62 | ||
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Maher Inc. reported income from continuing operations before taxes during 2020 of $790,000. Additional transactions occurring...
Maher Inc. reported income from continuing operations before taxes during 2020 of $790,000. Additional transactions occurring...
Maher Inc. reported income from continuing operations before taxes during 2020 of $790,000. Additional transactions occurring in 2020 but not used in computing the $790,000 are as follows. > Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax). > When its president died, the corporation realized $150,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $46,000....
Maher Inc. reported income from continuing operations before taxes during 2017 of $790,000. Additional transactions occurring...
Maher Inc. reported income from continuing operations before taxes during 2017 of $790,000. Additional transactions occurring in 2017 but not considered in the $790,000 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $90,000 during the year At the beginning of 2015, the corporation purchased a machine for $54,000 (salvage value of $9,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to...
Bonita Inc. reported income from continuing operations before taxes during 2020 of $790,900. Additional transactions occurring...
Bonita Inc. reported income from continuing operations before taxes during 2020 of $790,900. Additional transactions occurring in 2020 but not considered in the $790,900 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $98,500 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $73,800 (salvage value of $12,300) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed...
Problem 4-3 Maher Inc. reported income from continuing operations before taxes during 2014 of $816,100. Additional...
Problem 4-3 Maher Inc. reported income from continuing operations before taxes during 2014 of $816,100. Additional transactions occurring in 2014 but not considered in the $816,100 are as follows. 1. The corporation experienced an uninsured flood loss (extraordinary) in the amount of $97,300 during the year. The tax rate on this item is 46%. 2. At the beginning of 2012, the corporation purchased a machine for $59,400 (salvage value of $9,900) that had a useful life of 6 years. The...
1 2 Bramble Inc. reported income from continuing operations before taxes during 2020 of $802,600. Additional...
1 2 Bramble Inc. reported income from continuing operations before taxes during 2020 of $802,600. Additional transactions occurring in 2020 but not considered in the $802,600 are as follows. The corporation experienced an uninsured flood loss in the amount of $92.900 during the year. At the beginning of 2018, the corporation purchased a machine for $72,000 (salvage value of $12,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018,2019, and 2020, but failed to...
1. 2. Whispering Inc. reported income from continuing operations before taxes during 2020 of $793,700. Additional...
1. 2. Whispering Inc. reported income from continuing operations before taxes during 2020 of $793,700. Additional transactions occurring in 2020 but not considered in the $793,700 are as follows. The corporation experienced an uninsured flood loss in the amount of $91,900 during the year. At the beginning of 2018, the corporation purchased a machine for $70,200 (salvage value of $11,700) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed...
Problem 4-03 Vaughn Inc. reported income from continuing operations before taxes during 2020 of $807,900. Additional...
Problem 4-03 Vaughn Inc. reported income from continuing operations before taxes during 2020 of $807,900. Additional transactions occurring in 2020 but not considered in the $807,900 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $92,700 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $57,600 (salvage value of $9,600) that had a useful life of 6 years. The bookkeeper used straight- line depreciation for 2018, 2019, and...
Show Attempt History Current Attempt in Progress Splish Inc. reported income from continuing operations before taxes...
Show Attempt History Current Attempt in Progress Splish Inc. reported income from continuing operations before taxes during 2020 of $796,800. Additional transactions occurring in 2020 but not considered in the $796,800 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $94,100 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $81,000 (salvage value of $13,500) that had a useful life of 6 years. The bookkeeper used straight-line depreciation...
Wavecresting reported income from continuing operations before tax of $1,790,000 during 2020. Additional transactions Occurring in...
Wavecresting reported income from continuing operations before tax of $1,790,000 during 2020. Additional transactions Occurring in 2020 but not included in the $1,790,000 were as follows: 1 2 3 The corporation experienced an insured flood loss of $80,000 during the year. At the beginning of 2018, the corporation purchased a machine for $54,000 residual value of $9,000) that has a useful life of six years. The bookkeeper used straight-line depreciation for 2018, 2019 and 2020, but failed to deduct the...
The following is the trial balance of Thompson Corporation at December 31, 2020. Credit 10,000 $...
The following is the trial balance of Thompson Corporation at December 31, 2020. Credit 10,000 $ $ $ $ $ 18,000 160,000 18,000 1,100,000 $ 49,000 28,000 $ $ 70,000 THOMPSON CORPORATION Trial Balance December 31, 2020 Debit Purchase Discounts Cash $ 189,700 Accounts Receivable $ 105,000 Rent Revenue Retained Earnings Salaries and Wages Payable Sales Revenue Notes Receivable $ 110,000 Accounts Payable Accumulated Depreciation-Equipment Sales Discounts $ 14,500 Sales Returns and Allowances $ 17,500 Notes Payable Selling Expenses $...
Maher Inc. reported income from continuing operations before taxes during 2020 of $790,000. Additional transactions occurring in 2020 but not used in computing the $790,000 are as follows. > Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax). > When its president died, the corporation realized $150,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $46,000....
Maher Inc. reported income from continuing operations before taxes during 2017 of $790,000. Additional transactions occurring in 2017 but not considered in the $790,000 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $90,000 during the year At the beginning of 2015, the corporation purchased a machine for $54,000 (salvage value of $9,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to...
1 2 Bramble Inc. reported income from continuing operations before taxes during 2020 of $802,600. Additional transactions occurring in 2020 but not considered in the $802,600 are as follows. The corporation experienced an uninsured flood loss in the amount of $92.900 during the year. At the beginning of 2018, the corporation purchased a machine for $72,000 (salvage value of $12,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018,2019, and 2020, but failed to...
1. 2. Whispering Inc. reported income from continuing operations before taxes during 2020 of $793,700. Additional transactions occurring in 2020 but not considered in the $793,700 are as follows. The corporation experienced an uninsured flood loss in the amount of $91,900 during the year. At the beginning of 2018, the corporation purchased a machine for $70,200 (salvage value of $11,700) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed...
Problem 4-03 Vaughn Inc. reported income from continuing operations before taxes during 2020 of $807,900. Additional transactions occurring in 2020 but not considered in the $807,900 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $92,700 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $57,600 (salvage value of $9,600) that had a useful life of 6 years. The bookkeeper used straight- line depreciation for 2018, 2019, and...
Show Attempt History Current Attempt in Progress Splish Inc. reported income from continuing operations before taxes during 2020 of $796,800. Additional transactions occurring in 2020 but not considered in the $796,800 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $94,100 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $81,000 (salvage value of $13,500) that had a useful life of 6 years. The bookkeeper used straight-line depreciation...
Wavecresting reported income from continuing operations before tax of $1,790,000 during 2020. Additional transactions Occurring in 2020 but not included in the $1,790,000 were as follows: 1 2 3 The corporation experienced an insured flood loss of $80,000 during the year. At the beginning of 2018, the corporation purchased a machine for $54,000 residual value of $9,000) that has a useful life of six years. The bookkeeper used straight-line depreciation for 2018, 2019 and 2020, but failed to deduct the...
The following is the trial balance of Thompson Corporation at December 31, 2020. Credit 10,000 $ $ $ $ $ 18,000 160,000 18,000 1,100,000 $ 49,000 28,000 $ $ 70,000 THOMPSON CORPORATION Trial Balance December 31, 2020 Debit Purchase Discounts Cash $ 189,700 Accounts Receivable $ 105,000 Rent Revenue Retained Earnings Salaries and Wages Payable Sales Revenue Notes Receivable $ 110,000 Accounts Payable Accumulated Depreciation-Equipment Sales Discounts $ 14,500 Sales Returns and Allowances $ 17,500 Notes Payable Selling Expenses $...
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