Practice Questions w Answers (1)

Sheffield Corp.has income from continuing operations of $220,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1. 2 An unrealized loss of $50,300 on available-for-sale securities. A gain of $37.500 on the discontinuance of a division (comprised of a $9.400 loss from operations and a $46,900 gain on disposal). Assume all items are subject to income taxes at a 15% tax rate. D SUPP

AP Trayer Corporation has income from continuing operations of $290,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). An unrealized loss of $80,000 on available-for-sale securities.A gain of $30,000 on the discontinuance of a division (comprised of a $10,000 loss from operations and a $40,000 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate.   Instructions Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income.

Riverbed Corp has income from continuing operations of $394,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1.   An unrealized loss of $57,800 on available-for-sale securities. 2.   A gain of $24,400 on the discontinuance of a division (comprised of a $5,900 loss from operations and a $30,300 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate.Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income. RIVERBED CORPPartial Income Statementchoose the accounting period                                                            select an income statement item                                                                  $enter a dollar amount  select an income statement item                                                                    select an income statement item…

Flounder Corp. has income from continuing operations of $246,500 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1.   An unrealized loss of $68,000 on available-for-sale securities. 2.   A gain of $25,500 on the discontinuance of a division (comprised of a $8,500 loss from operations and a $34,000 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate.Prepare a statement of comprehensive income, beginning with income from continuing operations. FLOUNDER CORP.Partial Statement of Comprehensive Incomechoose the accounting period                                                           For the Year Ended December 31, 2022December 31, 2022For the Month Ended December 31, 2022 select a comprehensive income item                                                           DividendsExpensesNet Income / (Loss)Retained EarningsRevenueTotal ExpensesTotal RevenuesIncome Tax ExpenseIncome Before…

Your answer is partially correct. Trayer Corporation has income from continuing operations of $290,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). A gain of $30,000 on the discontinuance of a division (comprised of a $10,000 loss from operations and a $40,000 gain on disposal). 1. An unrealized loss of $80,000 on available-for-sale securities. 2. Assume all items are subject to income taxes at a 20% tax rate. Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income for the year ended December 31, 2022. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Income from Continuing Operations Discontinued Operations TRAYER CORPORATION Income Statement (Partial) For the Year Ended December 31, 2022 Gain from Disposal, Net of Income Taxes Loss from Operations, Net of Income Tax Savings Net Income (Loss) > > A…

Pina Colada Corp. has income from continuing operations of $413,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1. 2. An unrealized loss of $64,600 on available-for-sale securities. A gain of $26,400 on the discontinuance of a division (comprised of a $9,100 loss from operations and a $35,500 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate. Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income. Income from Continuing Operations Discontinued Operations Loss from Operations Gain on Disposal Net Income /(Loss) PINA COLADA CORP. Partial Income Statement For the Year Ended December 31, 2022 ←► Unrealized Holding Loss of Available-for-Sale Securities $ tA PINA COLADA CORP. Statement of Comprehensive Income For the Year Ended December 31, 2022 $ tA (7280) 28400 LA 413,000 21120 434120

Sheridan Corporation has income from continuing operations of $278,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). An unrealized loss of $74,000 on available-for-sale securities. 2. Again of $25,000 on the discontinuance of a division (comprised of a $19,000 loss from operations and a $44,000 gain on disposal). Assume all items are subject to income taxes at a 15% tax rate. Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income. (Enter loss using either a negativign preceding the number eg.-2,945 or parentheses e.g. (2.945)) Income from Continuing Operations Discontinued Operations Gain from Disposal, Net of Income Taxes SHERIDAN CORPORATION Income Statement (Partial) For the Year Ended December 31, 2022 Ines from nortinne Nat of Income Tay Saunas 37400 16150 278000

Marigold Corp. has income from continuing operations of $219,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes). Anunrealized loss of $72,600 on available-for-sale securities. 1. Again of $27,600 on the discontinuance of a division (comprised of a $6,400 loss from operations and a $34,000 gain on disposal). 2. Assume all items are subject to income taxes at a 15% tax rate. Prepare a statement of comprehensive income, beginning with income from continuing operations. MARIGOLD CORP. Partial Statement of Comprehensive Income $ $

Swifty Corporation has income from continuing operations of $319,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1.   An unrealized loss of $58,800 on available-for-sale securities. 2.   A gain of $25,300 on the discontinuance of a division (comprised of a $8,200 loss from operations and a $33,500 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate.Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income. SWIFTY CORPORATIONPartial Income Statementchoose the accounting period                                                            select an income statement item                                                                  $enter a dollar amount  select an income statement item                                                                    select an income statement item…

Pina Colada Corp. has income from continuing operations of $413,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1.   An unrealized loss of $64,600 on available-for-sale securities. 2.   A gain of $26,400 on the discontinuance of a division (comprised of a $9,100 loss from operations and a $35,500 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate.Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income. PINA COLADA CORP.Partial Income Statement choose the accounting period                                                            select an income statement item                                                                  $enter a dollar amount select an income statement item                                                                    select an income statement item…

An entity had the following events and transactions during 2020:   Depreciation for 2019 was understated by P500,000 A litigation settlement resulted in a loss of P2,000,000 The inventory on December 31, 2018 was overstated by P800,000 The entity disposed of a recreational division at a loss P1,500,000 The income tax rate is 30%   What total amount of loss should be included in income from continuing operations for 2020? a. 2,000,000 1,400,000 3,500,000 2,450,000

Pharoah Corporation has income from continuing operations of $278,400 for the year ended December 31, 2025. It also has the following items (before considering income taxes). 1. 2. An unrealized loss of $76,800 on available-for-sale securities. Again of $28,800 on the discontinuance of a division (comprised of a $9,600 loss from operations and a $38,400 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate. Prepare a partial income statement, beginning with income from continuing operations. Income from Continuing Operations Discontinued Operations Gain from Disposal Loss from Operations Net Income/(Loss) Prepare a statement of comprehensive income. Net Income /(Loss) PHAROAH CORPORATION Income Statement (Partial) For the Year Ended December 31, 2025 V Other Comprehensive Income PHAROAH CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2025 V Unrealized Loss of Available-for-Sale Securities V Comprehensive Income LA $ LA $ 278,400

Trayer Corporation has income from continuing operations of $254,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes). 1.   An unrealized loss of $77,000 on available-for-sale securities. 2.   A gain of $27,000 on the discontinuance of a division (comprised of a $15,000 loss from operations and a $42,000 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate.Prepare a statement of comprehensive income, beginning with income from continuing operations. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

An entity had the following events and transactions during 2020:- Depreciation for 2019 was understated by P500,000- A litigation settlement resulted in a loss of P2,000,000- The inventory on December 31, 2018 was overstated by P800,000- The entity disposed of a recreational division at a loss P1,500,000- The income tax rate is 30%What total amount of loss should be included in income from continuing operations for 2020?            a. 2,000,000                                                    c. 3,500,000            b. 1,400,000                                                    d. 2,450,000 EXPLAIN THE ANSWER.

4. On November 1, 2021, Agar-Agar Corporation had a division that met the criteria for discontinuance of a business component. For the period January 1 through November 1, 2021, the component had a revenue of P1,000,000 and expenses of P1,200,000. The assets of the component were sold on November 2, 2021 at a loss of P100,000. The income from continuing operations of Agar-Agar for 2021 was P5,000,000. The income tax rate is 25%. What amount should be reported as net income for 2021?

On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. • The book value of the assets of the segment at the time of the sale was $12 million. • The loss from operations of the segment during 2024 was $4.5 million. • Pretax income from other continuing operations for the year totaled $6.6 million. • The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example. $4,000,000 rather than $4. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes Income…

On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $12 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. • The book value of the assets of the segment at the time of the sale was $10 million. • The loss from operations of the segment during 2024 was $3.7 million. • Pretax income from other continuing operations for the year totaled $5.9 million. • The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4. Answer is complete but not entirely correct. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from…

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 $2.70 million loss before income tax. Jacob has an average tax rate of 25%. Assume that Jacob had not yet sold the division's assets by the end of 2021. Further, assume that the fair value less cost to sell of the division's assets at December 31, 2021, was $23.70 million and was expected to remain the same when the assets are sold in 2022. The book value of the division's assets was $18.73 million at the end of 2021. Required: 1. What would Jacob report in its 2021 income statement regarding the Office Furniture division? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) 2. What would Jacob report in its 2021 balance sheet…

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 $3 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 the fair value less cost to sell of the division's assets at December 31, 2021, was $12 million and was expected to remain the same when the assets are sold in 2022. The book value of the division's assets was $19 million at the end of 2021. Required: 1. What would Jacob report in its 2021 income statement regarding the Office Furniture division? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) 2. What would Jacob report in its 2021 balance sheet regarding…

"Your answer has been saved. See score details after the due date. 2025, Carla Vista Corporation disposed of Lisa Division, a major component of its business. Carla Vista realized a loss of $1531000, et of taxes, on the sale of Lisa's assets. Lisa's operating income, net of taxes, was $550000 in 2025. How should these facts be ported in Carla Vista's income statement for 2025? Total Amount to be Included in O Income from Results of Continuing Operations Discontinued Operations 1531000 loss 550000 gain $550000 gain 0 981000 loss $1531000 loss 981000 loss 0

2.On Feb, 1, Johnson Co. agreed to sell the assets of its Formal Wear Division to Sun Hat Inc. The following additional facts pertain to the transaction: The Formal Wear Division qualifies as a component of the entity according to GAAP regarding discontinued operations. The book value of Formal Wear's assets totaled $48 million on December 31, 2021. Formal Wear's operating income was a pre-tax loss of $10 million in 2021. Tango's income tax rate is 25%. Suppose that the Formal Wear Division's assets had not been sold by December 31, 2021, but were considered held for sale. Assume that the fair value of these assets was $40 million at December 31, 2021. In the income statement for the year ended December 31, 2021, Tango Co. would report discontinued operations of: A) $7.5 million loss. B) $10.0 million loss. C) $18 million loss. D) $13.5 million loss. .

Please help me to solve this problem

am. 105.

Se.27.

On September 1, 2019, Barkeley Co. enters into a tentative agreement to sell the assets of its office equipment division. This division qualifies as a component of the entity according to IFRS regarding discontinued operations. The division's contribution to Barkeley's operating income for 2019 was a $3 million loss before taxes. Barkeley has an average tax rate of 28%. Assume that Barkeley had not yet sold the division's assets by the end of 2019. Further, assume that the fair value less costs to sell of the division's assets at December 31, 2019, was $24 million and was expected to remain the same when the assets are sold in 2020. The book value of the division's assets was $19 million at the end of 2019. Under these assumptions, what would Jacob report in its 2019 income statement regarding the office equipment division? Explain where this information would be presented. [Show your reason based on IFRS standard and your computation]

BBB,Inc sells its unprofitable division A at a gain of $20,000. Before the sale, division A had a net loss of $50,000 for the period. Which of the following is true? The$20,000. Before the sale, Division U had a net loss of $50,000 for the period. Which of the following is true O The $20,000 gain on sale will be disclosed in the notes to the financial statements only, with the 550 operations. The $50,000 net loss will be a part of continuing operations and the $20,000 gain on sale will be a part of discontinued operations. The $20,000 gain on sale will be a part of continuing operations and the $50,000 net loss wil be a part of discontinued operations. Both the net loss of $50,000 as well as the gain on sale of $20,000 will be included as a part of discontinued operations.

The Skywalker Corporation finalized the sale of its droid manufacturing division for $9.4 million on December 31, 2024, at the close of the fiscal year. The droid manufacturing business segment qualifies as a component of the entity, according to GAAP Consider the The income from operations of the segment during 2024 was $4.2 million. Pretax income from other continuing operations for the year totaled $12.2 million. The income tax rate is 25%.   Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes

WOODBRICKS CORP. decided on September 1, 2021 to dispose of a component of business.  The component was sold on October 31, 2021.  The net income of WOODBRICKS CORP. for the year 2021 included income of P8,000,000 from operating the discontinued segment from January 1 to the date of disposal. The entity incurred a loss of P3,000,000 on the October 31 sale of the business component.  What amount should be reported as pretax income or loss from discontinued operations for 2021?