Do fast answer of this question solution accounting Dandy Candy Company sold its licorice division resulting in a loss of $60,000. Assuming a taxrate of 25%, the loss on this disposal will be reported on the income statement at what amount?A) $75,000B) $15,000C) $60,000D) $45,000

Step 1: Define Asset DisposalAfter the expiry of the useful life of a fixed asset, it is sold in the…

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Financial Management: Theory & Practice

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Chapter2: Financial Statements, Cash Flow,and Taxes

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1) Zoro Products sold its Eastern Division at a loss of $1,000,000. Zoro’s tax rate is 25%. How will this loss be reported in Zoro’s financial statements? A : As a loss of $662,500, net of $187,500 income tax savings B :As a loss of $1,000,000 C :As a loss of $750,000, net of $250,000 income tax savings D :As a loss of $1,250,000, including income tax of $250,000 2) The following information was taken from the records of Prime Office Supplies Inc. immediately before and after the reacquisition of 10,000 shares.The average price per share before the reacquisition was $25. Assuming no other transactions took place, what would be the balance in the Retained Earnings account after the acquisition? A : $625,000 B : $375,000 C : $725,000 D : $525,0000 3) A corporation paid $8 per share for 9,000 of its own common shares that had originally sold for an average of $5. What will be the effect on total shareholders' equity? decrease of $27,000 B : increase of $45,000 C…
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
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.
In Baer Food Co.’s year 1 single step income statement, the section titled “Revenue” consist of the following: Net sales Revenue $187,000 Results from discontinued operations: loss from discontinued component Z including loss on disposal of $1,200 $16,400 less tax benefit 4,000 (12,400) Interest income 10,200 gain on sale of equipment 4,700 extra ordinary gain 1,500 Total revenue 191,000 In…
During the year, Belyk Paving Co. had sales of $2,600,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,535,000, $465,000, and $520,000, respectively. In addition, the company had an interest expense of $245,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) (Enter your answer as directed, but do not round intermediate calculations.) Required: (a) What is Belyk's net income? (Negative amount should be indicated by a minus sign.) Net income (b) What is Belyk's operating cash flow? Operating cash flow A
Southeast Airlines had pretax earnings of $65 million, including a gain on disposal of a discontinued operation of $10 million. The company’s tax rate is 40%. What is the amount of income tax expense that Southeast should report in its income statement? How should the gain on disposal of a discontinued operation be reported?
Your answer is partially correct. Trayer Corporation has income from continuing operations of $290,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). A gain of $30,000 on the discontinuance of a division (comprised of a $10,000 loss from operations and a $40,000 gain on disposal). 1. An unrealized loss of $80,000 on available-for-sale securities. 2. Assume all items are subject to income taxes at a 20% tax rate. Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income for the year ended December 31, 2022. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Income from Continuing Operations Discontinued Operations TRAYER CORPORATION Income Statement (Partial) For the Year Ended December 31, 2022 Gain from Disposal, Net of Income Taxes Loss from Operations, Net of Income Tax Savings Net Income (Loss) > > A…
Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue's gross profit is equal to Select one: a. 1,070,000 b. $1,100,000 c. $1,500,000 d. $770,000
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Dandy Candy Company sold its licorice division resulting in a loss of $60,000. Assuming a tax rate of 25%, the loss on this disposal will be reported on the income statement at what amount? A) $75,000 B) $15,000 C) $60,000 D) $45,000