Assume that Blue Spruce Inc. decided to sell DemandTV Ltd., a subsidiary, on September 30, 2020. There is a formal plan to dispose of the business component, and the sale qualifies for discontinued operations treatment. Pertinent data on the operations of
Assume that Blue Spruce Inc. decided to sell DemandTV Ltd., a subsidiary, on September 30, 2020. There is a formal plan to dispose of the business component, and the sale qualifies for discontinued operations treatment. Pertinent data on the operations of the TV subsidiary are as follows: loss from operations from beginning of year to September 30, $2.2 million (net of tax of $700,000); loss from operations from September 30 to end of 2020, $600,000 (net of tax of $250,000); estimated loss on sale of net assets to December 31, 2020 (net of tax of $50,000), $180,000. The year end is December 31. Blue Spruce prepares financial statements in accordance with IFRS.
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Assume that Blue Spruce Inc. decided to sell DemandTV Ltd., a subsidiary, on September 30, 2020. There is a formal plan to dispose of the business component, and the sale qualifies for discontinued operations treatment. Pertinent data on the operations of
Blue Spruce Corporation, a clothing retailer, had income from operations (before tax) of $307,500, and recorded...
Blue Spruce Corporation, a clothing retailer, had income from operations (before tax) of $307,500, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020: Gain on disposal of equipment Unrealized (loss)/gain on FV-NI investments (Loss)/gain on disposal of building Gain on disposal of FV-Nl investments 22,140 (44,280) (55,760) 27,060 Blue Spruce also had the following account balances as at January 1, 2020: Retained earnings Accumulated other comprehensive income (this was due to a revaluation surplus on land)...
On October 5, 2017, Diamond in the Flounder Group Inc.’s board of directors decided to dispose...
On October 5, 2017, Diamond in the Flounder Group Inc.’s board of directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately 73% of its income from its human resources management practice. The Blue Division gets contracts to perform human resources management on an outsourced basis. The board decided to dispose of the division because of unfavourable operating results. Net income for Diamond was $95,500 for the fiscal year ended December 31, 2017 (after...
On October 5, 2020, Diamond in the Grouper Recruiting Group Inc.’s board of directors decided to...
On October 5, 2020, Diamond in the Grouper Recruiting Group Inc.’s board of directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately 79% of its income from its human resources management practice. The Blue Division gets contracts to perform human resources management on an outsourced basis. The board decided to dispose of the division because of unfavourable operating results. Net income for Diamond was $91,140 for the fiscal year ended December 31, 2020...
The comparative statement of financial position of Blue Spruce Inc. as at June 30, 2020, and...
The comparative statement of financial position of Blue Spruce Inc. as at June 30, 2020, and a statement of comprehensive income for the 2020 fiscal year follow: BLUE SPRUCE INC. Statement of Financial Position June 30, 2020 June 30 Assets 2020 2019 Cash $ 20,000 $ 44,000 Accounts receivable 86,200 75,600 Inventory 104,000 101,400 Prepaid expenses 2,700 5,000 FV-OCI investments 47,800 44,400 Equipment 179,000 159,000 Accumulated depreciation equipment (36,000) (23,400) Total $403,700 $ 406,000 Liabilities and Shareholders' Equity Accounts payable...
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according...
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP.. The book value of the assets of the segment was $18 million. The loss from operations of the segment during 2021 was $4.5 million. Pretax income from continuing operations for the year totaled $7.2 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated fair value...
Exercise 4-10 a-c The following is information for Blue Spruce Corp. for the year ended December...
Exercise 4-10 a-c The following is information for Blue Spruce Corp. for the year ended December 31, 2020: Sales revenue Unrealized gain on FV-OCI equity investments Interest income Cost of goods sold Selling expenses Administrative expenses Dividend revenue $1,220,000 45,000 9,000 732,000 61,000 51,000 15,000 Loss on inventory due to decline in net realizable value Loss on disposal of equipment Depreciation expense related to buildings omitted by mistake in 2019 Retained earnings at December 31, 2019 Loss from expropriation of...
4 Homework The semiconductor business of the California Microtech Corporation qualifies as a component of the...
4 Homework The semiconductor business of the California Microtech Corporation 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 $3.2 million Pretax income from continuing operations for the year totaled $6.0 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated...
Brief Exercise 4-8 (Algo) Discontinued operations (L04-4) The semiconductor business of the California Microtech Corporation qualifies...
Brief Exercise 4-8 (Algo) Discontinued operations (L04-4) The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP.. The book value of the assets of the segment was $10 million. The loss from operations of the segment during 2021 was $4.7 million. Pretex income from continuing operations for the year totaled $77 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for...
The following information was taken from the records of Blue Inc. for the year 2020: Income...
The following information was taken from the records of Blue Inc. for the year 2020: Income tax applicable to income from continuing operations $228,140; income tax applicable to loss on discontinued operations $31,110, and unrealized holding gain on available for sale securities (net of tax) $18,300. Gain on sale of equipment Loss on discontinued operations Administrative expenses Rent revenue Loss on write-down of inventory $115,900 91,500 292,800 48,800 73.200 Cash dividends declared Retained earnings January 1, 2020 Cost of goods...
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...
Blue Spruce Corporation, a clothing retailer, had income from operations (before tax) of $307,500, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020: Gain on disposal of equipment Unrealized (loss)/gain on FV-NI investments (Loss)/gain on disposal of building Gain on disposal of FV-Nl investments 22,140 (44,280) (55,760) 27,060 Blue Spruce also had the following account balances as at January 1, 2020: Retained earnings Accumulated other comprehensive income (this was due to a revaluation surplus on land)...
The comparative statement of financial position of Blue Spruce Inc. as at June 30, 2020, and a statement of comprehensive income for the 2020 fiscal year follow: BLUE SPRUCE INC. Statement of Financial Position June 30, 2020 June 30 Assets 2020 2019 Cash $ 20,000 $ 44,000 Accounts receivable 86,200 75,600 Inventory 104,000 101,400 Prepaid expenses 2,700 5,000 FV-OCI investments 47,800 44,400 Equipment 179,000 159,000 Accumulated depreciation equipment (36,000) (23,400) Total $403,700 $ 406,000 Liabilities and Shareholders' Equity Accounts payable...
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP.. The book value of the assets of the segment was $18 million. The loss from operations of the segment during 2021 was $4.5 million. Pretax income from continuing operations for the year totaled $7.2 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated fair value...
Exercise 4-10 a-c The following is information for Blue Spruce Corp. for the year ended December 31, 2020: Sales revenue Unrealized gain on FV-OCI equity investments Interest income Cost of goods sold Selling expenses Administrative expenses Dividend revenue $1,220,000 45,000 9,000 732,000 61,000 51,000 15,000 Loss on inventory due to decline in net realizable value Loss on disposal of equipment Depreciation expense related to buildings omitted by mistake in 2019 Retained earnings at December 31, 2019 Loss from expropriation of...
4 Homework The semiconductor business of the California Microtech Corporation 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 $3.2 million Pretax income from continuing operations for the year totaled $6.0 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated...
Brief Exercise 4-8 (Algo) Discontinued operations (L04-4) The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP.. The book value of the assets of the segment was $10 million. The loss from operations of the segment during 2021 was $4.7 million. Pretex income from continuing operations for the year totaled $77 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for...
The following information was taken from the records of Blue Inc. for the year 2020: Income tax applicable to income from continuing operations $228,140; income tax applicable to loss on discontinued operations $31,110, and unrealized holding gain on available for sale securities (net of tax) $18,300. Gain on sale of equipment Loss on discontinued operations Administrative expenses Rent revenue Loss on write-down of inventory $115,900 91,500 292,800 48,800 73.200 Cash dividends declared Retained earnings January 1, 2020 Cost of goods...
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...
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