Question

On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $19 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 $17 million. The loss from operations of the segment during 2021 was $4.8 million, Pretax income from continuing operations for the year totaled $6.8 million. The income tax rate is 25% Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes, Ignore EPS disclosures (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)

Answer 1

Solution Page! CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations $6800,000 before income taxes Income tax expense ($1700,000) (C8OOOOO X256) Income foram continuing operations $5100,000 Discontinued operations: Loss from operations of discontinued ($2800,000) component Juusome tax benefit ($28.00,000x25) $700,000 ($2100,000) Juame (loss) on discontinued operations Met Income $3000,000

Working Mote : Page? Cakeutation of loss from operations of discontinued tal component: $2000,000 ( $19000,000-$17,000 000) loss from operations ($4800,000) Total loss before taxe ( $2,800,000) Grain on Sale of Assets