Income Statement Sections
During the current year, David Corporation sold a segment of its business at a gain of $210,000. Until it was sold, the segment had a current period operating loss of $75,000. The company had $700,000 income from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $700,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 20 percent income tax rate. Disregard earnings per share disclosures.
Do not use negative signs with any of your answers.
| Income from Continuing Operations | Answer | |
| Discontinued Operations | ||
| Loss from operations of discontinued segment | Answer | |
| Gain on disposal of discontinued segment | Answer | Answer |
| Net Income | Answer |
Include both non adjusted and adjusted income tax answers
Homework Answers
Do not use negative signs with any of your answers.
| Income from Continuing Operation | 700000 | |
| Discontinued Operations | ||
| Loss from operations of discontinued segment (75000*80%) | 60000 | |
| Gain on disposal of discontinued segment (210000*80%) | 168000 | 108000 |
| Net Income | 808000 |
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Income Statement Sections
During the current year, David Corporation sold a segment of its
business at...
Income Statement Format The following information from Belvidere Company's current operations is available: Administrative expenses $82,800...
Income Statement Format The following information from Belvidere Company's current operations is available: Administrative expenses $82,800 Cost of goods sold 556,800 Sales revenue 926,400 Selling expenses 104,400 Interest expense 8,400 Loss from operations of discontinued segment 72,000 Gain on disposal of discontinued segment 48,000 Income taxes: Amount applicable to ordinary operations 69,600 Reduction applicable to loss from operations of discontinued segment 28,800 Amount applicable to gain on disposal of discontinued segment 19,200 Required a. Prepare a multiple-step income statement. (Disregard...
Income Statement Pallest Corporation reported the following pretax information for its current fiscal year: $40,000 income...
Income Statement Pallest Corporation reported the following pretax information for its current fiscal year: $40,000 income from continuing operations and an $8,000 loss arising from discontinuing a segment (it was simply closed, no gain or loss on sale). Pallest is subject to a 30% income tax rate and had 8,000 shares of common stock outstanding for the year. Starting with pretax income from continuing operations, prepare a partial income statement for Pallest for the current year. Be sure to include...
In its proposed 2017 income statement, Hrabik Corporation reports income before income taxes $504,000, income taxes $176...
In its proposed 2017 income statement, Hrabik Corporation
reports income before income taxes $504,000, income taxes $176,400
(not including unusual items), loss on operation of discontinued
music division $55,000, gain on disposal of discontinued music
division $36,000, and unrealized loss on available-for-sale
securities $151,000. The income tax rate is 35%.
Prepare a correct income statement, beginning with income before
income taxes.
Hrabik CORPORATION Statement of Comprehensive Income (Partial) Income from continuing operations 1000 TT Comprehensive income TT Unrealized gain on...
On November 15, 20x1 Lima Co. sold a segment of its business for $2,750,000. The net...
On November 15, 20x1 Lima Co. sold a segment of its business for $2,750,000. The net book value of the segment at the time of its disposal was $2,900,000. Lima had pretax income from operations of $1,750,000 for 20x1 which included $360,000 recognized by the discontinued segment prior to its disposal. Assume Lima’ tax rate is 21%. Required: Prepare a partial income statement for Lima Co. for 20x1, beginning with pretax income from continuing operations.
On November 15, 20X1 Jones Co. sold a segment of its business for $2,750,000. The net...
On November 15, 20X1 Jones Co. sold a segment of its business for $2,750,000. The net book value of the segment at the time of its disposal was $2,900,000. Jones had pretax income from operations of $1,750,000 for 20X1 which included $360,000 recognized by the discontinued segment prior to its disposal. Assume Jones' tax rate is 21%. Required: Prepare a partial income statement for Jones Co. for 20X1, beginning with pretax income from continuing operations.
2) The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL...
2) The following incorrect income
statement was prepared by the accountant of the Axel
Corporation:
AXEL CORPORATION
Income Statement
For the Year Ended December 31, 2021
Revenues and gains:
Sales revenue
$
780,000
Interest revenue
51,000
Gain on sale of investments
98,000
Total revenues and gains
929,000
Expenses and losses:
Cost of goods sold
$
420,000
Selling expense
78,000
Administrative expense
98,000
Interest expense
35,000
Restructuring costs
74,000
Income tax expense
56,000
Total expenses and losses
761,000
Net Income
$...
On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconduct...
On December 31, 2021, the end of the fiscal year, California
Microtech Corporation completed the sale of its semiconductor
business for $14 million. The semiconductor business segment
qualifies as a component of the entity according to GAAP. The book
value of the assets of the segment was $13 million. The loss from
operations of the segment during 2021 was $3.8 million. Pretax
income from continuing operations for the year totaled $6.0
million. The income tax rate is 25%.
Prepare the...
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...
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...
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according...
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP.. The book value of the assets of the segment was $18 million. The loss from operations of the segment during 2021 was $4.5 million. Pretax income from continuing operations for the year totaled $7.2 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated fair value...
Income Statement Pallest Corporation reported the following pretax information for its current fiscal year: $40,000 income from continuing operations and an $8,000 loss arising from discontinuing a segment (it was simply closed, no gain or loss on sale). Pallest is subject to a 30% income tax rate and had 8,000 shares of common stock outstanding for the year. Starting with pretax income from continuing operations, prepare a partial income statement for Pallest for the current year. Be sure to include...
In its proposed 2017 income statement, Hrabik Corporation
reports income before income taxes $504,000, income taxes $176,400
(not including unusual items), loss on operation of discontinued
music division $55,000, gain on disposal of discontinued music
division $36,000, and unrealized loss on available-for-sale
securities $151,000. The income tax rate is 35%.
Prepare a correct income statement, beginning with income before
income taxes.
Hrabik CORPORATION Statement of Comprehensive Income (Partial) Income from continuing operations 1000 TT Comprehensive income TT Unrealized gain on...
On November 15, 20X1 Jones Co. sold a segment of its business for $2,750,000. The net book value of the segment at the time of its disposal was $2,900,000. Jones had pretax income from operations of $1,750,000 for 20X1 which included $360,000 recognized by the discontinued segment prior to its disposal. Assume Jones' tax rate is 21%. Required: Prepare a partial income statement for Jones Co. for 20X1, beginning with pretax income from continuing operations.
2) The following incorrect income
statement was prepared by the accountant of the Axel
Corporation:
AXEL CORPORATION
Income Statement
For the Year Ended December 31, 2021
Revenues and gains:
Sales revenue
$
780,000
Interest revenue
51,000
Gain on sale of investments
98,000
Total revenues and gains
929,000
Expenses and losses:
Cost of goods sold
$
420,000
Selling expense
78,000
Administrative expense
98,000
Interest expense
35,000
Restructuring costs
74,000
Income tax expense
56,000
Total expenses and losses
761,000
Net Income
$...
On December 31, 2021, the end of the fiscal year, California
Microtech Corporation completed the sale of its semiconductor
business for $14 million. The semiconductor business segment
qualifies as a component of the entity according to GAAP. The book
value of the assets of the segment was $13 million. The loss from
operations of the segment during 2021 was $3.8 million. Pretax
income from continuing operations for the year totaled $6.0
million. The income tax rate is 25%.
Prepare the...
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP.. The book value of the assets of the segment was $18 million. The loss from operations of the segment during 2021 was $4.5 million. Pretax income from continuing operations for the year totaled $7.2 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated fair value...
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