What before-tax amount(s) should Mercedes report as loss on discontinued operations in its 2013 income statement?...
What before-tax amount(s) should Mercedes report as loss on discontinued operations in its 2013 income statement?
On October 28, 2013, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2013, the end of the company's fiscal year. The division's loss from operations for 2013 was $2,000,000. The division's book value and fair value less cost to sell on December 31 were $3,000,000 and $2,500,000, respectively.
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What before-tax amount(s) should Mercedes report as loss on
discontinued operations in its 2013 income statement?...
On October 28, 2018, Mercedes Company committed to a plan to sell a division that qualified...
On October 28, 2018, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2018, the end of the company's fiscal year. The division's loss from operations for 2018 was $1,980,000. The division's book value and fair value less cost to sell on December 31 were $2,830,000 and $3,690,000, respectively. What before-tax amount(s) should Mercedes...
How do you find the income (loss) from operations of discontinued component for requirement #3? The...
How do you find the income (loss) from operations of
discontinued component for requirement #3?
The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2021 and 2020: Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Gain on sale of division 2021 2020 $ 16,700,000 $11,300,000 10,050,0006,850,000 6,650,000 4,450,000 3,880,000 3,280,000 2,770,000 1,170,000 770,000 3,540,000 1,170,000 885,000 292,500 $ 2,655,000 $ 877,500 Income tax expense Net income...
Discontinued Operations D-1On December 31, 2019, Tooluth, Inc., completed the sale of one of its divisions...
Discontinued Operations D-1On December 31, 2019, Tooluth, Inc., completed the sale of one of its divisions for $5 million. The division qualifies as a separate component of an entity as defined by GAAP. The book value of the assets of the division was $3 million. The operating loss of the division during 2019 was $2.5 million. Pretax income from continuing operations for the year totaled $6 million. The income tax rate is 30%. Required: Prepare the lower portion of the...
The following condensed income statements of the Jackson Holding Company are presented for the two years...
The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2018 and 2017: 4 2018 2017 Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income Gain on sale of division $15,000,000 $9,600,000 9.200,000 6,000,000 5,800,0003,600,000 200,000 2,600,000 2,600,000 1,000,000 600,000 Income Tax expense Net Income 3,200,0001,000,000 1,280,000 400,000 S1,920,000 $ 600,000 On October 15, 2018, Jackson entered into a tentative agreement to sell the assets of one of its...
Results of Discontinued Operations On November 30, Fleiner Company announced its plans to discontinue the operations...
Results of Discontinued Operations On November 30, Fleiner Company announced its plans to discontinue the operations of Division P (a major component of the company) by selling the division. On December 31, Division P had not yet been sold and was classified as held for sale. On this date, Division P had assets with a book value of $920,000 and liabilities with a book value of $610,000. Fleiner estimates that the fair value of Division P on this date is...
Please provide writen out solution The following condensed income statements of the Jackson Holding Company are...
Please provide writen out solution
The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2021 and 2020: 2021 2020 Sales revenue $ 15,000,000 $ 9,600,000 Cost of goods sold 9,200,000 6,000,000 Gross profit 5,800,000 3,600,000 Operating expenses 3,200,000 2,600,000 Operating income 2,600,000 1,000,000 Gain on sale of division 600,000 3,200,000 1,000,000 Income tax expense 800,000 250,000 Net income $ 2,400,000 750,000 On October 15, 2021, Jackson entered into a tentative...
The following condensed income statements of the Jackson Holding Company are presented for the two years...
The following condensed income statements of the Jackson Holding
Company are presented for the two years ended December 31, 2021 and
2020:
Required:
1. prepare revised income statements according to generally
accepted accounting principles, beginning with income from
continuing operations before income taxes. Ignore EPS
disclosures.
2. Assume that by December 31, 2021, the division had not yet
been sold but was considered held for sale. The fair value of the
division's assets on December 31 was $5,000,000. what would...
m) Each o esces On August 1, 2016, Rocket Retailers adopted a plan to discontinue its...
m) Each o esces On August 1, 2016, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2017. On January 31, 2017, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2016-Jan. 31, 2017 Estimated operating losses, Feb. 1-June 30, 2017 Impairment...
On September 1, 2021, Jacob Furniture Mart enters into a tentative agreement to sell the assets...
On September 1, 2021, Jacob Furniture Mart enters into a tentative agreement to sell the assets of its Office Furniture division. This division qualifies as a component of the entity according to GAAP regarding discontinued operations. The division's contribution to Jacob's operating income for 2021 was a $2.40 million loss before income tax. Jacob has an average tax rate of 25%. Assume that Jacob had not yet sold the Office Furniture division by the end of 2021. Further, assume that...
E 4-8 Discontinued operations; disposal in subsequent year • L04-4 Kandon Enterprises, Inc., has two operating...
E 4-8 Discontinued operations; disposal in subsequent year • L04-4 Kandon Enterprises, Inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting princi- ples. The horse division has been unprofitable, and, on November 15, 2021, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2022. At December 31, 2021, the component was considered held for sale....
How do you find the income (loss) from operations of
discontinued component for requirement #3?
The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2021 and 2020: Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Gain on sale of division 2021 2020 $ 16,700,000 $11,300,000 10,050,0006,850,000 6,650,000 4,450,000 3,880,000 3,280,000 2,770,000 1,170,000 770,000 3,540,000 1,170,000 885,000 292,500 $ 2,655,000 $ 877,500 Income tax expense Net income...
The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2018 and 2017: 4 2018 2017 Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income Gain on sale of division $15,000,000 $9,600,000 9.200,000 6,000,000 5,800,0003,600,000 200,000 2,600,000 2,600,000 1,000,000 600,000 Income Tax expense Net Income 3,200,0001,000,000 1,280,000 400,000 S1,920,000 $ 600,000 On October 15, 2018, Jackson entered into a tentative agreement to sell the assets of one of its...
Results of Discontinued Operations On November 30, Fleiner Company announced its plans to discontinue the operations of Division P (a major component of the company) by selling the division. On December 31, Division P had not yet been sold and was classified as held for sale. On this date, Division P had assets with a book value of $920,000 and liabilities with a book value of $610,000. Fleiner estimates that the fair value of Division P on this date is...
Please provide writen out solution
The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2021 and 2020: 2021 2020 Sales revenue $ 15,000,000 $ 9,600,000 Cost of goods sold 9,200,000 6,000,000 Gross profit 5,800,000 3,600,000 Operating expenses 3,200,000 2,600,000 Operating income 2,600,000 1,000,000 Gain on sale of division 600,000 3,200,000 1,000,000 Income tax expense 800,000 250,000 Net income $ 2,400,000 750,000 On October 15, 2021, Jackson entered into a tentative...
The following condensed income statements of the Jackson Holding
Company are presented for the two years ended December 31, 2021 and
2020:
Required:
1. prepare revised income statements according to generally
accepted accounting principles, beginning with income from
continuing operations before income taxes. Ignore EPS
disclosures.
2. Assume that by December 31, 2021, the division had not yet
been sold but was considered held for sale. The fair value of the
division's assets on December 31 was $5,000,000. what would...
m) Each o esces On August 1, 2016, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2017. On January 31, 2017, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2016-Jan. 31, 2017 Estimated operating losses, Feb. 1-June 30, 2017 Impairment...
On September 1, 2021, Jacob Furniture Mart enters into a tentative agreement to sell the assets of its Office Furniture division. This division qualifies as a component of the entity according to GAAP regarding discontinued operations. The division's contribution to Jacob's operating income for 2021 was a $2.40 million loss before income tax. Jacob has an average tax rate of 25%. Assume that Jacob had not yet sold the Office Furniture division by the end of 2021. Further, assume that...
E 4-8 Discontinued operations; disposal in subsequent year • L04-4 Kandon Enterprises, Inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting princi- ples. The horse division has been unprofitable, and, on November 15, 2021, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2022. At December 31, 2021, the component was considered held for sale....
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