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 $3.20 million. Pretax income from continuing operations for the year totaled $6.00 million. The income tax rate is 25% %. Assume instead that the estimated fair value of the segment's assets, less costs to sell, on December 31 was $15 million rather than $17 million. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.) Answer is complete but not entirely correct. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Loss from operations of discontinued component Income tax benefit Loss on discontinued operations Net income (loss) $ 6,000,000 (1,500,000) $ 4,500,000 (3,200,000) 800,000 (2,400,000) X $ 2,100,000
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 $3.20 million. Pretax income from continuing operations for the year totaled $6.00 million. The income tax rate is 25% %. Assume instead that the estimated fair value of the segment's assets, less costs to sell, on December 31 was $15 million rather than $17 million. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.) Answer is complete but not entirely correct. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Loss from operations of discontinued component Income tax benefit Loss on discontinued operations Net income (loss) $ 6,000,000 (1,500,000) $ 4,500,000 (3,200,000) 800,000 (2,400,000) X $ 2,100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
![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
$3.20 million. Pretax income from continuing operations for the year totaled $6.00
million. The income tax rate is 25% %. Assume instead that the estimated fair value of the
segment's assets, less costs to sell, on December 31 was $15 million rather than $17
million.
Prepare the lower portion of the 2021 income statement beginning with income from
continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be
deducted and negative amounts should be indicated with a minus sign. Enter your
answers in whole dollars and not in millions.)
Answer is complete but not entirely correct.
CALIFORNIA MICROTECH CORPORATION
Partial Income Statement
For the Year Ended December 31, 2021
Income from continuing operations before income
taxes
Income tax expense
Income from continuing operations
Discontinued operations:
Loss from operations of discontinued component
Income tax benefit
Loss on discontinued operations
Net income (loss)
$ 6,000,000
(1,500,000)
$ 4,500,000
(3,200,000)
800,000
(2,400,000) X
$ 2,100,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F63189ee9-2c24-43bc-a226-b600fb65c6ae%2Fxcd7mbu_processed.png&w=3840&q=75)
Transcribed Image Text: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
$3.20 million. Pretax income from continuing operations for the year totaled $6.00
million. The income tax rate is 25% %. Assume instead that the estimated fair value of the
segment's assets, less costs to sell, on December 31 was $15 million rather than $17
million.
Prepare the lower portion of the 2021 income statement beginning with income from
continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be
deducted and negative amounts should be indicated with a minus sign. Enter your
answers in whole dollars and not in millions.)
Answer is complete but not entirely correct.
CALIFORNIA MICROTECH CORPORATION
Partial Income Statement
For the Year Ended December 31, 2021
Income from continuing operations before income
taxes
Income tax expense
Income from continuing operations
Discontinued operations:
Loss from operations of discontinued component
Income tax benefit
Loss on discontinued operations
Net income (loss)
$ 6,000,000
(1,500,000)
$ 4,500,000
(3,200,000)
800,000
(2,400,000) X
$ 2,100,000
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