Exercise 4-8 (Algo) Discontinued operations; disposal in subsequent year [LO4-4] Kandon Enterprises, Incorporated, has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and, on November 15, 2024, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2025. At December 31, 2024, the component was considered held for sale. Consider the following: ⚫ On December 31, 2024, the company's fiscal year-end, the book value of the assets of the horse division was $339,000. On that date, the fair value of the assets, less costs to sell, was $290,000. • The before-tax loss from operations of the division for the year was $230,000. • The after-tax income from continuing operations for 2024 was $490,000. ⚫ The company's effective tax rate is 25%. Required: 1. Prepare a partial income statement for 2024 beginning with income from continuing operations. Ignore EPS disclosures. 2. Prepare a partial income statement for 2024 beginning with income from continuing operations. Assume that the estimated net fair value of the horse division's assets was $580,000, instead of $290,000. Ignore EPS disclosures. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a partial income statement for 2024 beginning with income from continuing operations. Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. KANDON ENTERPRISES, INCORPORATED Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations Discontinued operations: Net income (loss) 0
Exercise 4-8 (Algo) Discontinued operations; disposal in subsequent year [LO4-4] Kandon Enterprises, Incorporated, has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and, on November 15, 2024, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2025. At December 31, 2024, the component was considered held for sale. Consider the following: ⚫ On December 31, 2024, the company's fiscal year-end, the book value of the assets of the horse division was $339,000. On that date, the fair value of the assets, less costs to sell, was $290,000. • The before-tax loss from operations of the division for the year was $230,000. • The after-tax income from continuing operations for 2024 was $490,000. ⚫ The company's effective tax rate is 25%. Required: 1. Prepare a partial income statement for 2024 beginning with income from continuing operations. Ignore EPS disclosures. 2. Prepare a partial income statement for 2024 beginning with income from continuing operations. Assume that the estimated net fair value of the horse division's assets was $580,000, instead of $290,000. Ignore EPS disclosures. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a partial income statement for 2024 beginning with income from continuing operations. Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. KANDON ENTERPRISES, INCORPORATED Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations Discontinued operations: Net income (loss) 0
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1P
Related questions
Question
![Exercise 4-8 (Algo) Discontinued operations; disposal in subsequent year [LO4-4]
Kandon Enterprises, Incorporated, has two operating divisions; one manufactures machinery and the other breeds and sells horses.
Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has
been unprofitable, and, on November 15, 2024, Kandon adopted a formal plan to sell the division. The sale was completed on April 30,
2025. At December 31, 2024, the component was considered held for sale. Consider the following:
⚫ On December 31, 2024, the company's fiscal year-end, the book value of the assets of the horse division was $339,000. On that
date, the fair value of the assets, less costs to sell, was $290,000.
• The before-tax loss from operations of the division for the year was $230,000.
• The after-tax income from continuing operations for 2024 was $490,000.
⚫ The company's effective tax rate is 25%.
Required:
1. Prepare a partial income statement for 2024 beginning with income from continuing operations. Ignore EPS disclosures.
2. Prepare a partial income statement for 2024 beginning with income from continuing operations. Assume that the estimated net
fair value of the horse division's assets was $580,000, instead of $290,000. Ignore EPS disclosures.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare a partial income statement for 2024 beginning with income from continuing operations. Ignore EPS disclosures.
Note: Amounts to be deducted should be indicated with a minus sign.
KANDON ENTERPRISES, INCORPORATED
Partial Income Statement
For the Year Ended December 31, 2024
Income from continuing operations
Discontinued operations:
Net income (loss)
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ae2ea3f-5beb-4719-8c30-ed9e0f2d4fc4%2F3c3336ec-3f64-47f8-8e7c-7f3a745d99f1%2Fgw7qpz_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 4-8 (Algo) Discontinued operations; disposal in subsequent year [LO4-4]
Kandon Enterprises, Incorporated, has two operating divisions; one manufactures machinery and the other breeds and sells horses.
Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has
been unprofitable, and, on November 15, 2024, Kandon adopted a formal plan to sell the division. The sale was completed on April 30,
2025. At December 31, 2024, the component was considered held for sale. Consider the following:
⚫ On December 31, 2024, the company's fiscal year-end, the book value of the assets of the horse division was $339,000. On that
date, the fair value of the assets, less costs to sell, was $290,000.
• The before-tax loss from operations of the division for the year was $230,000.
• The after-tax income from continuing operations for 2024 was $490,000.
⚫ The company's effective tax rate is 25%.
Required:
1. Prepare a partial income statement for 2024 beginning with income from continuing operations. Ignore EPS disclosures.
2. Prepare a partial income statement for 2024 beginning with income from continuing operations. Assume that the estimated net
fair value of the horse division's assets was $580,000, instead of $290,000. Ignore EPS disclosures.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare a partial income statement for 2024 beginning with income from continuing operations. Ignore EPS disclosures.
Note: Amounts to be deducted should be indicated with a minus sign.
KANDON ENTERPRISES, INCORPORATED
Partial Income Statement
For the Year Ended December 31, 2024
Income from continuing operations
Discontinued operations:
Net income (loss)
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning