1 Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered aS200000 loss in the year of disposal. The loss on disposal of the segment was $100000. If the tax rate is30%, and income before income taxes was S1600000,athe losses from discontinued operations are reported net of income taxes at $300000.the income tax expense on the income before discontinued operations is $390000.c the income from continuing operations is $1120000.d net income is $1300000.

1 Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $200000 loss in the year of disposal. The loss on disposal of the segment was $100000. If the tax rate is 30%, and income before income taxes was $1600000, the losses from discontinued operations are reported net of income taxes at $300000. b the income tax expense on the income before discontinued operations is $390000. c the income from continuing operations is $1120000. d net income is $1300000.

1 Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $200000 loss in the year of disposal. The loss on disposal of the segment was $100000. If the tax rate is 30%, and income before income taxes was $1600000, the losses from discontinued operations are reported net of income taxes at $300000. b the income tax expense on the income before discontinued operations is $390000. c the income from continuing operations is $1120000. d net income is $1300000.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 19P: The Bookbinder Company had 500,000 cumulative operating losses prior to the beginning of last year....

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1 Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a S200000 loss in the year of disposal. The loss on disposal of the segment was $100000. If the tax rate is 30%, and income before income taxes was $1600000, a the losses from discontinued operations are reported net of income taxes at $300000. b the income tax expense on the income before discontinued operations is $390000. c the income from continuing operations is $1120000. d net income is $1300000.
Metlock, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a S215000 loss in the year of disposal. The loss on disposal of the segment was $115000. If the tax rate is 319%, and income before income taxes was $1615000, a the income tax expense on the income before discontinued operations is $432300. b. the income from continuing operations is $1114350. c. the losses from discontinued operations are reported net of income taxes at $330000. d. net income is $1285000.
Bramble, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $343000 loss in the year of disposal. The loss on disposal of the segment was $159000. If the tax rate is 20%, and income before income taxes was $2210000 O the income tax expense on the income before discontinued operations is $341600. O net income is $1708000. O the losses from discontinued operations are reported net of income taxes at $159000. O the income from continuing operations is $1768000.
Windsor, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a S222000 loss in the year of disposal. The loss on disposal of the segment was S122000. If the tax rate is 32%, and income before income taxes was $1622000, net income is $1278000. the losses from discontinued operations are reported net of income taxes at $344000. the income tax expense on the income before discontinued operations is $454080. the income from continuing operations is $1102960.
Ace Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $200,000 loss in the year of disposal. The loss on disposal of the segment was $100,000. If the tax rate is 30%, and income before income taxes was $1,600,000, OA) the income from continuing operations is $1,120,000. O B) the losses from discontinued operations are reported net of income taxes at $300,000. C) net income is $1,300,000. D) the income tax expense on the income before discontinued operations is $390,000.
On June 30, Sarasota Corp. discontinued its operations in Mexico. On September 1, Sarasota disposed of the Mexico facility at a pretax loss of $797,000. The applicable tax rate is 28%. Show the discontinued operations section of Sarasota's statement of comprehensive income. SARASOTA CORP. Partial Statement of Comprehensive Income 2$
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Heavenly Taft, Inc. sold a division of its company during the year for a $400,000 gain. Prior to the date of sale, the year-to-date net loss for the division was A $1,000,000. The company's tax rate is 30%. What will be reported on the income statement as a "special item?" O $420,000 loss O $1,000,000 discontinued operation loss less a $300,000 tax savings O $400,00 gain less $120,000 income tax O Both B and C
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Mercy Company has correctly classified the fuel and oil division as discontinued operation. For the year ended December 31, 2022, the disposal group incurred trading loss before tax of P2,000,000 and the loss on remeasuring it to fair value less cost of disposal was P1,500,000. The income tax rate is 30%. What amount should be reported as loss from discontinued operation for 2022?
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