1. Chance Company Partial Income Statement For the Year Ended December 31, 2021
Income From Continuing Operations | $560,000 |
Discontinued Operations ; | |
Loss from Operation of Discontinued Components ($410,000+$130,000) | $(540,000) |
Income Tax Benefit ($540,000×40%) | $216,000 |
Loss on Discontinued Operations | $(324,000) |
Net Income | $236,000 |
Earnings Per Share : | |
Income From Continuing Operations | $5.60 |
Loss from discontinued operation | $3.24 |
Net Income | $2.36 |
2. (1) Kandon Enterprises Inc. Partial Income Statement For the Year Ended December 31.2021
Income From Continuing Operations | $500,000 |
Discontinued Operations gain (Loss); | |
Loss from Operations of Discontined Component | $(290,000) |
Income Tax Benefit (25%) | $72,500 |
Loss on Discontinued Operations | $(217,500) |
Net Income | $282,500 |
Explanation;
Loss from Operation of Discontinued Componet = $240,000 +$50,000 = $290,000
Impairment Loss = $350,000 - $300,000 = $50,000
(2) Kandon Enterprises Inc. Partial Income Statement For the Year Ended December 31, 2021
Income From Continuing Operations | $500,000 | |
Discontinued Operations Gain (Loss); | ||
Loss from Operation of Discontinued Component | $(240,000) | |
Income Tax Benefit (25%) | $60,000 | |
Loss on Discontinued Operations | $(180,000) | |
Net Income | $320,000 |
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $740,000. The book value of the division's assets was $1,290,000, resulting in a before-tax loss...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $680,000. The book value of the division's assets was $1,170,000, resulting in a before-tax loss...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $760,000. The book value of the division's assets was $1,330,000, resulting in a before-tax loss...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $770,000. The book value of the division's assets was $1,350,000, resulting in a before-tax loss...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $750,000. The book value of the division’s assets was $1,310,000, resulting in a before-tax loss...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $610,000. The book value of the division's assets was $1,020,000, resulting in a before tax...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $600,000. The book value of the division's assets was $1,000,000, resulting in a before tax...
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 principles. 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. points On December 31, 2021, the company's fiscal year-end, the book...
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 principles. 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. On December 31, 2021, the company’s fiscal year-end, the book value...
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $770,000. The book value of the division's assets was $1,350,000, resulting in a before-tax loss...