Question

Cendant Corporation's results for the year ended December 31, 2021, include the following material items:

Sales revenue	$	6,200,000
Cost of goods sold		3,800,000
Selling and administrative expenses		1,300,000
Loss on sale of investments		200,000
Loss on discontinued operations		500,000
Loss on impairment from continuing operations		80,000

Cendant Corporation's income from continuing operations before income taxes for 2021 is:

Answer 1

Calaculation of Cendant corporation's income from continuing operations before income taxes for 2021:

.	($)
Sales Revenue	$6200000
Cost of goods sold	($3800000)
Gross income	$2400000
Operating expenses:
Selling and administrative expenses	($1300000)
Operating income	$1100000
Other income/expense
Loss on sale of investment	($200000)
Loss on impairment from continuing operations	($80000)
INCOME FROM CONTINUING OPERATIONS	$820000

*Loss on discontinued need not to be considered as it doesn't affect the income from continuing operations.

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