21 On January 1, 2020, Balloon Ltd. decided to discontinue its plastics making division. The division, considered a reportable segment, was sold on June 1, 2020. Division assets with a carrying value of $812,500 were sold for $625,000. Operating income from January 1 to May 31 for the division was $62,500. Ignoring taxes, what amount should be reported on Balloon’s income statement for the year ended December 31, 2020, under the caption "discontinued operations"? Select one: a. $250,000 gain b. $62,500 gain c. $187,500 loss d. $125,000 loss
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21
On January 1, 2020, Balloon Ltd. decided to discontinue its plastics making division. The division, considered a reportable segment, was sold on June 1, 2020. Division assets with a carrying value of $812,500 were sold for $625,000. Operating income from January 1 to May 31 for the division was $62,500. Ignoring taxes, what amount should be reported on Balloon’s income statement for the year ended December 31, 2020, under the caption "discontinued operations"?

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- The following information is related to Dickinson Company for 2020. Retained earnings balance, January 1, 2020 $ 980,000 Sales revenue 25,000,000 Cost of goods sold 16,000,000 Interest revenue 70,000 Selling and administrative expenses 4,700,000 Write-off of goodwill 820,000 Income taxes for 2020 1,244,000 Gain on the sale of investments 110,000 Loss due to flood damage 390,000 Loss on the disposition of the wholesale division (net of tax) 440,000 Loss on operations of the wholesale division (net of tax) 90,000 Dividends declared on common stock 250,000 Dividends declared on preferred stock 80,000 Dickinson Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. Instructions Prepare a multiple-step income statement…The following pretax amounts pertain to Han Ae Sook Company for the year ended December 31, 2020: Sales -P800,000; Distribution and administrative costs – P84,000; Other income - P40,000; Interest expense - P4,000; Cost of goods sold – P480,000; Correction of prior period error (credit) – P16,000; Discontinued operations (debit) – P40,000; Cumulative effect of change in accounting policy (credit) – P28,000; Retained earnings, January 1 (not restated) – P160,000; Dividends declared – P12,000; Income tax rate is 30%. How much retained earnings would be shown on December 31, 2020 statement of financial position? А. Р310,400 В. Р335,600 C. P341,200 D. P344,800Accounting The before-tax income for Environmentalists Corp. for 2021 was $295,000; for 2020, it was $320.000. You have spent considerable time reviewing the accounts and have noted the following: Sales for 2020 included $72,000 that had been received in cash during 202O, but for which the related products were delivered in 202 Performance was considered complete on delivery. Ending inventory on December 31, 2021, was understated by $6,500. The December 31, 2020 ending inventory was overstated by $3,300. In January 2021, Environmentalists reviewed its recycling machinery. The machine was purchased in January 2018 for $250,000 with a residual value of $30,000 and a useful life of 10 years. Environmentalists has determined the remaining useful life is now 5 years with no residual value. Ordinary repairs to equipment had been charged in error to the Equipment account during 2021,2020 and 2019. In total, repairs in the amount of $7,500 in 2021, $8,400 in 2020 and $9,000 in 2019 were…
- Marine Corporation collected $120,000 during 2020. Of this amount, $2,000 was still unearned as of December 31, 2020. The company reported sales of $128,000. Marine purchased inventory during 2020 of $48,000, and the inventory account balance was the same at the beginning and the end of the year. What was the company's gross profit for 2020?Pharoah, Inc. has the following data for the year ended December 31, 2020: Net sales $273,000 Loss on disposal of discontinued operation 20,900 Cost of goods sold 165,400 Interest expense 4,600 Selling expenses 15,900 Administrative expenses 37,410 Shares of capital stock outstanding, 10,000 Tax rate of 30% on all items Prepare a multiple-step income statement for Pharoah, Inc. for the year ended December 31, 2020. (Round earnings per share answers to 2 decimal places, e.g. 5.25.)Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component Sales revenue Cost of goods sold Administrative expense Selling expense Operating income before taxes 2024 $ 5,200,000 3,020,000 960,000 520,000 166,000 On July 1, 2024, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2024, for $112,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/2024-9/30/2024 $ 560,000 (370,000 (66,000) (36,000) $ 88,000 232,000 112,000 2023 $ 4,300,000 2,160,000 835,000 462,000 156,000 232,000 REED COMPANY Comparative Income Statements 2023 $ 660,000 (416,000) (56,000)…
- 15. Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 2021 2020 Sales revenue $ 4,450,000 $ 3,550,000 Cost of goods sold 2,870,000 2,010,000 Administrative expense 810,000 685,000 Selling expense 370,000 312,000 Interest revenue 151,000 141,000 Interest expense 202,000 202,000 Loss on sale of assets of discontinued component 52,000 — On July 1, 2021, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2021, for $52,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/2021–9/30/2021 2020 Sales revenue $ 410,000 $ 510,000 Cost of goods sold (295,000 ) (326,000 ) Administrative expense (51,000 )…ces Rembrandt Paint Company had the following income statement items for the year ended December 31, 2024 ($ in thousands): Cost of goods sold Sales revenue Interest revenue Interest expense 380 Selling and administrative expense 580 Restructuring costs $ 17,500 3,900 2,200 $ 32,000 In addition, during the year, the company completed the disposal of its plastics business and incurred a loss from operations of $3 million and a gain on disposal of the component's assets of $4.8 million. There were 700,000 shares of common stock outstanding throughout 2024. Income tax expense has not yet been recorded. The income tax rate is 25% on all items of income (loss). Required: Prepare a multiple-step income statement for 2024, including EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands except earnings per share. Round EPS answers to 2 decimal places. REMBRANDT PAINT COMPANY Income Statement For the Year Ended December 31, 2024 ($…Shaquille Corporation has operating income of $1.7 million, a loss on write-down of inventory of $200,000, and income tax expense of $425,000 for the year ended December 31, 2021, before considering the following item: a $275,000 gain, after tax, from the disposal of an operating segment. Required: Prepare the 2021 multiple step income statement for Shaquille Corporation beginning with operating income.
- On April 1, 2020, Desert Company decided to dispose of their Scorpion Division. Desert sold Scorpion Division to Cactus Corporation on November 30, 2020, for net gain on the sale of $138,984. From April 1st to November 30th, Scorpion Division generated a gain on operations of $164,246. The tax rate is 30%. Desert reported $807,304 in Income from Continuing Operations. What is the amount of Net Income Desert will report on its income statement? *round your answer to the nearest dollarDuke Company's records show the following account balances at December 31, 2024: Sales revenue Cost of goods sold General and administrative expense $ 15,400,000 9,200,000 Selling expense Interest expense 1,020,000 520,000 720,000 Income tax expense has not yet been determined. The following events also occurred during 2024. All transactions are material in amount. 1. $320,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $420,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2023 was understated by $52,000 due to a mathematical error. The amount is considered material. 4. The company experienced a negative foreign currency translation adjustment of $220,000 and had an unrealized gain on debt securities of $200,000. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2024. The company's effective tax rate on…Duke Company's records show the following account balances at December 31, 2024: Sales revenue Cost of goods sold General and administrative expense Selling expense Interest expense $ 17,200,000 10,100,000 1,110,000 610,000 810,000 Income tax expense has not yet been determined. The following events also occurred during 2024. All transactions are material in amount. 1. $410,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $510,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2023 was understated by $61,000 due to a mathematical error. The amount is considered material. 4. The company experienced a negative foreign currency translation adjustment of $310,000 and had an unrealized gain on debt securities of $290,000. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2024. The company's effective tax rate on…

