Amount ($) | |
Income from continuing operations before income taxes (1) | 1,500,000 |
Income tax expense (25%) | (375,000) |
Income from continuing operations | 1,125,000 |
Discontinued operations: | |
Loss from operations of discontinued component(2) | (150,000) |
Income tax benefit (25%) | 37,500 |
Loss on discontinued operations | (112,500) |
Net income (930,000 - 108,000) | 1,012,500 |
Working:
(1) Income from continuing operations before income taxes:
Income from continuing operations before income taxes: Unadjusted = 1,300,000
Add: Gain from sale of factory (1,400,000 - 1,200,000) = 200,000
Adjusted.................................................................................................= $1,380,000
(2) Loss from operations of discontinued component
Loss on sale of assets | (320,000) |
Income from operations | 170,000 |
Loss before tax | (150,000) |
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes...
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,310,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. 1. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from...
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,250,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. 1. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from...
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,360,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material 1. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from...
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,220,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. 1. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified a plan to sell the chain in May 2021. The income from operations of the chain from January 1, 2021, through November was $162,000 and the loss...
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,320,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. 1. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from...
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,390,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. 1. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from...
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,350,000 before considering the following transactions and events. All of the Items described below are before taxes and the amounts should be considered material 1. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from...
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,380,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from January...
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,360,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from January...
For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,300,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from January...