On September 1, 2012, Ramos Inc. approved a plan to dispose of a segment of its business. Ramos expected that the sale would occur on March 31, 2013, at an estimated gain of $375,500. The segment had actual and estimated operating profits (losses as follows):Please prepare answers to the following questions. Assume a marginal tax rate of 35%Realized loss from 1/1/12 to 8/31/12 …….... $ 200,000Realized loss from 9/1/12 to 12/31/12 ……...$ 135,000 Expected profit from 1/1/13 to 3/31/13. ….... $ 475,000What should Ramos report as profit or loss from discontinued operations (net of tax effects) in its 2012 income statement? Calculate the amount of income that should be shown on the 2013 income statement as a result of the operating profit and the gain on disposal (net of tax). Please include details to support your response.

Operating profit: Operating profit: operating profit can be defined as profit earned from ordinary…

Answered: ccur on March 31, 2013, at an estimated…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

On September 1, 2012, Ramos Inc. approved a plan to dispose of a segment of its business. Ramos expected that the sale would occur on March 31, 2013, at an estimated gain of $375,500. The segment had actual and estimated operating profits (losses as follows):

Please prepare answers to the following questions. Assume a marginal tax rate of 35%

Realized loss from 1/1/12 to 8/31/12 …….... $ 200,000
Realized loss from 9/1/12 to 12/31/12 ……...$ 135,000
Expected profit from 1/1/13 to 3/31/13. ….... $ 475,000

What should Ramos report as profit or loss from discontinued operations (net of tax effects) in its 2012 income statement?
Calculate the amount of income that should be shown on the 2013 income statement as a result of the operating profit and the gain on disposal (net of tax). Please include details to support your response.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions