Question

For its fiscal year ending October 31, 2020, Haas Corporation reports the following partial data shown below.

Income before income taxes		$535,000
Income tax expense (29% x $404,000)		117,160
Income from continuing operations		417,840
Loss on discontinued operations		131,000
Net income		$286,840

The loss on discontinued operations was comprised of a $56,000 loss from operations and a $75,000 loss from disposal. The income tax rate is 29% on all items.

(a)

Prepare a correct statement of comprehensive income beginning with income before income taxes. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945)

HAAS Co.

Partial Income Statement

For the Year Ended October 31, 2020

Income before Income Taxes		$ 535000
Income Tax Expense		$________
Income from Conti. Operations		$________
Discounted Operations
Loss from Operations	$______
Loss on Disposal	$______
		$________
Net Income / (Loss)		$ 286840

Answer 1

HAAS Co. Partial Income Statement For the Year Ended October 31, 2020 Income before Income Taxes $535,000 Income Tax Expense $ 155,150 Income from conti. Operations $379,850 Discounted Operations Loss from Operations $39,760 Loss on Disposal $53,250 S 93.010 Net Income / (Loss) S286,840 Working Notes: Income Tax Expenses = $535.000*29% = $155.150 Loss From operations net of tax = $56,000-($56,000*29%) = $39,760 Los on disposal = $75,000-(S75.000*29%) = $53,250