E5-8. Discontinued Operations. Elegant Homes Corporation provided the following statement of net income on December 31, 2022, before the disposal of a business segment. The income statement includes the results of operations of Elegant's mobile home division. The company made a commitment to dispose of the mobile home division on December 1, 2022. Elegant Homes Corporation Income Statement For the Year Ended December 31, 2022 Sales $500 Cost of Goods Sold (120) Gross Profit $380 Selling Expenses (80) General and Administrative Expenses (65) Other Revenues and Expenses (40) Loss on Asset Impairment (38) Income before Tax $157 Income Tax Expense (at 40%) (63) Net Income $ 94 The mobile home division accounts for 20% of sales, cost of goods sold, selling, and general and administra- tive expenses. Assume no gain or loss on remeasurement of the division. Prepare the multiple-step income statement for 2022 only, assuming that Elegant sells the segment on December 31 at a $130 pretax loss. Round to the nearest dollar.
E5-8. Discontinued Operations. Elegant Homes Corporation provided the following statement of net income on December 31, 2022, before the disposal of a business segment. The income statement includes the results of operations of Elegant's mobile home division. The company made a commitment to dispose of the mobile home division on December 1, 2022. Elegant Homes Corporation Income Statement For the Year Ended December 31, 2022 Sales $500 Cost of Goods Sold (120) Gross Profit $380 Selling Expenses (80) General and Administrative Expenses (65) Other Revenues and Expenses (40) Loss on Asset Impairment (38) Income before Tax $157 Income Tax Expense (at 40%) (63) Net Income $ 94 The mobile home division accounts for 20% of sales, cost of goods sold, selling, and general and administra- tive expenses. Assume no gain or loss on remeasurement of the division. Prepare the multiple-step income statement for 2022 only, assuming that Elegant sells the segment on December 31 at a $130 pretax loss. Round to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![E5-8. Discontinued Operations. Elegant Homes Corporation provided the following statement of net income on
December 31, 2022, before the disposal of a business segment. The income statement includes the results of
operations of Elegant's mobile home division. The company made a commitment to dispose of the mobile
home division on December 1, 2022.
Elegant Homes Corporation
Income Statement
For the Year Ended December 31, 2022
Sales
$500
Cost of Goods Sold
(120)
Gross Profit
$380
Selling Expenses
(80)
General and Administrative Expenses
(65)
Other Revenues and Expenses
(40)
Loss on Asset Impairment
(38)
Income before Tax
$157
Income Tax Expense (at 40%)
(63)
Net Income
$ 94
The mobile home division accounts for 20% of sales, cost of goods sold, selling, and general and administra-
tive expenses. Assume no gain or loss on remeasurement of the division.
Prepare the multiple-step income statement for 2022 only, assuming that Elegant sells the segment on
December 31 at a $130 pretax loss. Round to the nearest dollar.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4dd7b28-6d5f-4d6d-85ea-8c2403293ee5%2Fb0be3e9b-f19d-4996-a13f-029ef79b31fa%2Frfkwjy_processed.png&w=3840&q=75)
Transcribed Image Text:E5-8. Discontinued Operations. Elegant Homes Corporation provided the following statement of net income on
December 31, 2022, before the disposal of a business segment. The income statement includes the results of
operations of Elegant's mobile home division. The company made a commitment to dispose of the mobile
home division on December 1, 2022.
Elegant Homes Corporation
Income Statement
For the Year Ended December 31, 2022
Sales
$500
Cost of Goods Sold
(120)
Gross Profit
$380
Selling Expenses
(80)
General and Administrative Expenses
(65)
Other Revenues and Expenses
(40)
Loss on Asset Impairment
(38)
Income before Tax
$157
Income Tax Expense (at 40%)
(63)
Net Income
$ 94
The mobile home division accounts for 20% of sales, cost of goods sold, selling, and general and administra-
tive expenses. Assume no gain or loss on remeasurement of the division.
Prepare the multiple-step income statement for 2022 only, assuming that Elegant sells the segment on
December 31 at a $130 pretax loss. Round to the nearest dollar.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education