Information for 2020 follows for Laura Corp.:Laura decided to discontinue its entire wholesale division (a major line of business) and to keep its manufacturing division. On September 15, it sold the wholesale division to Wild Corp. During 2020, there were 500,000 common shares outstanding all year. Laura's tax rate is 20% on operating income and all gains and losses (use this rate where the tax provisions are not given). Laura prepares financial statements in accordance with IFRS.Prepare a multiple-step statement of financial performance for the year ended December 31, 2020, showing expenses by function. Include calculation of EPS. Retained earnings, January 1, 2020$1,960,000Sales revenue43,500,000Cost of goods sold29,300,000Interest income131,000Selling and administrative expenses4,200,000Unrealized gain on FV-OCI equity investments (gains/losses not recycled)290,000Loss on impairment of goodwill511,000Income tax on continuing operations for 2020 (assume this is correct)646,400Assessment for additional income tax for 2018 (normal, recurring, and not caused by an error)446,000Gain on disposal of FV-NI investments143,000Loss from flood damage382,000Loss on disposal of discontinued division (net of tax of $62,975)291,900Loss from operation of discontinued division (net of tax of $40,775)173,100Dividends declared on common shares251,000Dividends declared on preferred shares79,300

Financial statement is the statement which states the performance as well as health of the business…

Answered: aura decided to discontinue its entire…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Information for 2020 follows for Laura Corp.:

Laura decided to discontinue its entire wholesale division (a major line of business) and to keep its manufacturing division. On September 15, it sold the wholesale division to Wild Corp. During 2020, there were 500,000 common shares outstanding all year. Laura's tax rate is 20% on operating income and all gains and losses (use this rate where the tax provisions are not given). Laura prepares financial statements in accordance with IFRS.

Prepare a multiple-step statement of financial performance for the year ended December 31, 2020, showing expenses by function. Include calculation of EPS.

Retained earnings, January 1, 2020
$1,960,000
Sales revenue
43,500,000
Cost of goods sold
29,300,000
Interest income
131,000
Selling and administrative expenses
4,200,000
Unrealized gain on FV-OCI equity investments (gains/losses not recycled)
290,000
Loss on impairment of goodwill
511,000
Income tax on continuing operations for 2020 (assume this is correct)
646,400
Assessment for additional income tax for 2018 (normal, recurring, and not caused by an error)
446,000
Gain on disposal of FV-NI investments
143,000
Loss from flood damage
382,000
Loss on disposal of discontinued division (net of tax of $62,975)
291,900
Loss from operation of discontinued division (net of tax of $40,775)
173,100
Dividends declared on common shares
251,000
Dividends declared on preferred shares
79,300

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