Homework Answers
| A discontinued operation relates to an operation for which ongoing operations have been eliminated and it is being disposed off. |
| Operating losses from discontinued operations | 3500000 |
| Less: Gain on sale of Pine's Assets | 3000000 |
| Loss from discontinued operations | 500000 |
| Income from Continuing operations = 0 | |
| Results of discontinued operations = 500000 loss | |
| Option D 0 500,000 loss is correct |
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QUESTION 1 During 2020, Lopez Corporation disposed of Pine Division, a major component of its business,...
1.) During 2014, Lopez Corporation disposed of Pine Division, a major component of its business. Lopez...
1.) During 2014, Lopez Corporation disposed of Pine Division, a major component of its business. Lopez realized a gain of $2,400,000, net of taxes, on the sale of Pine's assets. Pine's operating losses, net of taxes, were $2,800,000 in 2014. How should these facts be reported in Lopez's income statement for 2014? Total Amount to be Included in Income from Continuing Operations Discontinued Operations a. $2,800,000 loss $2,400,000 gain b. 400,000 loss 0 c. 0 400,000 loss d. 2,400,000 gain...
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...
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....
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...
Trayer Corporation has income from continuing operations of $260,000 for the year ended December 31, 2020....
Trayer Corporation has income from continuing operations of $260,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes). 1. An unrealized loss of $84,000 on available for sale securities. 2. A gain of $25,000 on the discontinuance of a division (comprised of a $15,000 loss from operations and a $40,000 gain on disposal). Assume all items are subject to income taxes at a 16% tax rate. Prepare a statement of comprehensive income,...
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...
The following information is related to Sheridan Company for 2020. Retained earnings balance, January 1, 2020...
The following information is related to Sheridan Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $999,600 25,500,000 16,320,000...
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....
Wer is parliam dydi. In its proposed 2020 income statement, Hrabik Corporation reports income before income...
Wer is parliam dydi. In its proposed 2020 income statement, Hrabik Corporation reports income before income taxes $504,000, income taxes $156,240 (not including unusual items), loss on operation of discontinued music division $55,000, gain on disposal of discontinued music division $42,000, and unrealized loss on available-for-sale securities $148,000. The income tax rate is 31%. 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...
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...
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....
Trayer Corporation has income from continuing operations of $260,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes). 1. An unrealized loss of $84,000 on available for sale securities. 2. A gain of $25,000 on the discontinuance of a division (comprised of a $15,000 loss from operations and a $40,000 gain on disposal). Assume all items are subject to income taxes at a 16% tax rate. Prepare a statement of comprehensive income,...
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...
The following information is related to Sheridan Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $999,600 25,500,000 16,320,000...
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....
Wer is parliam dydi. In its proposed 2020 income statement, Hrabik Corporation reports income before income taxes $504,000, income taxes $156,240 (not including unusual items), loss on operation of discontinued music division $55,000, gain on disposal of discontinued music division $42,000, and unrealized loss on available-for-sale securities $148,000. The income tax rate is 31%. 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...
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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