E5-8. Discontinued Operations. Elegant Homes Corporation provided the following statement of net income onDecember 31, 2022, before the disposal of a business segment. The income statement includes the results ofoperations of Elegant's mobile home division. The company made a commitment to dispose of the mobilehome division on December 1, 2022.Elegant Homes CorporationIncome StatementFor the Year Ended December 31, 2022Sales$500Cost of Goods Sold(120)Gross Profit$380Selling Expenses(80)General and Administrative Expenses(65)Other Revenues and Expenses(40)Loss on Asset Impairment(38)Income before Tax$157Income Tax Expense (at 40%)(63)Net Income$ 94The 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 onDecember 31 at a $130 pretax loss. Round to the nearest dollar.

Elegant Homes Corporation Income Statement For the Year Ended December 31, 2022 Sales $500…

Answered: E5-8. Discontinued Operations. Elegant…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5. determine combined net income (loss) of the home office and the branch for the year 2021.
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Hh1. Account
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