Question

Required information Problem 13-6AA Income statement computations and format LO A2 The following information applies to the questions displayed below) Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2017, follow. Debit Credit $ 15,280 $ 35,200 27,ese 45,20e 107,600 72,800 45,2ae 176,900 a. Interest revenue b. Depreciation expense-Equipment. C. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation Equipment B. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings 1. Loss from operating a discontinued segment (pretax) 1. Gain on insurance recovery of tornado damage k. Net sales 1. Depreciation expense-buildings 3. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit P. Income taxes expense 9. Cost of goods sold 19,456 30,320 1,010,5ee 53,269 17,200 4e,eee 24,950 494,500 Problem 13-6 Part 3 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? After-tax income from discontinued segment

Answer 1

Pre-tax Effect After Tax A Loss from Operating a sliq,uso) $(5835) (15, Discontinued segment d (3) Gain on Insurance Recovery 28 30,320 $9,096 $21,224 on Tornado Damage (c) Correction of Overstatement (,200) $5,160) $ (12,040) of Prior period Sales (1) Grain on Sale of Discontinued 284,000 $12,000 $28,000 Segments Assets As the Question arts for After tax Income/ Loss pertaining to only Discontinued fegment, the answer is ; Gain [o] =$28,000 (Tax Rate is 30%] Loss [A ] = $13,615 Income = $14,385 Freedor