During the current year, Newtech Corporation sold a segment of its business at a loss of $225,000. Until it was sold, the segment had a current period operating loss of $200,000. The company had $750,000 from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $750,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40% income tax rate. Disregard earnings per share disclosures. Newtech Corporation Partial Income Statement Income from continuing operations Discontinued operations Current Year Loss from operations of discontinued segment (net of tax) $ 200,000 Loss on disposal of discontinued segment (net of tax) Net income +A $ 750,000 0 0 $ 0
During the current year, Newtech Corporation sold a segment of its business at a loss of $225,000. Until it was sold, the segment had a current period operating loss of $200,000. The company had $750,000 from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $750,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40% income tax rate. Disregard earnings per share disclosures. Newtech Corporation Partial Income Statement Income from continuing operations Discontinued operations Current Year Loss from operations of discontinued segment (net of tax) $ 200,000 Loss on disposal of discontinued segment (net of tax) Net income +A $ 750,000 0 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During the current year, Newtech Corporation sold a segment of its business at a loss of $225,000.
Until it was sold, the segment had a current period operating loss of $200,000. The company had
$750,000 from continuing operations for the current year.
Prepare the lower part of the income statement, beginning with the $750,000 income from
continuing operations. Follow tax allocation procedures, assuming that all changes in income
are subject to a 40% income tax rate. Disregard earnings per share disclosures.
Newtech Corporation
Partial Income Statement
Income from continuing operations
Discontinued operations
Current Year
Loss from operations of discontinued segment (net of tax) $ 200,000
Loss on disposal of discontinued segment (net of tax)
Net income
$
750,000
0
0
$
0
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