In 2017, Flint Corporation discontinued its retail store operations to focus on its online opportunities. The elimination of these retailoperations is properly considered a discontinued operation. During the current year, its store operations lost $ 670,000 (net of tax)while its online operations reported a profit of $ 3,320,000 (net of tax). Flint sold the store operations at the end of the year at a loss of$ 1,340,000 (net of tax). Prepare an income statement for 2017 beginning with line item "Income from continuing operations."FLINT CORPORATIONPartial Income Statement$%24%24>>>

Income statement of the business shows all incomes and expenses of the business for the particular…

Answered: In 2017, Flint Corporation discontinued…

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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At the beginning of 2016, Norris Company had a deferred tax liability of $6,600, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 39% tax rate for 2017 and future years. Norris’s accounting records show the following pretax items of financial income for 2016: income from continuing operations, $120,300 (revenues of $351,500 and expenses of $231,200); gain on disposal of Division F, $24,000; loss from operations of discontinued Division F, $11,500; and prior period adjustment, $14,100, due to an error that understated revenue in 2015. All of these items are taxable; however, financial depreciation for 2016 on assets related to continuing operations exceeds tax depreciation by $4,600. Norris had a retained earnings balance of $161,300 on January 1, 2016, and declared and paid cash dividends of $32,800 during 2016. Required: 1.…
After many years of success, Kaputnik Co. recorded net operating losses for the years year 13 through year 16, totaling $250 million, resulting in the recording of large deferred tax assets based on the assumption of a rapid return to profitability. However, attempts by management to revamp its outmoded business model have so far failed. A radical final attempt to save the company will be implemented in year 18. It will entail selling off the vast majority of Kaputnik's asset groups while maintaining a small but promising segment. The projected outlook for the near term is a modest net profit of $5 million over the next three years, beyond which it is impossible to determine if Kaputnik Co. will even still be in existence. The enacted tax rate has been 35% for the last several years and is expected to be 21% in year 17 and future years. No addition to the deferred tax asset balance will be recorded for year 17, during which Kaputnik recorded a $70 million net operating loss, nor has…
BEE company report TOTAL net income of $902 milllion before tax. During the year, BEE committed to dispose of its retail repair shops. The retail repair shops are a component of its business and the disposal represents a strategic shift in the company's operations. The retail repair shops reported $55 million in pretax profit for the year. The carrying value of the retail repair shops is $198 million with a fair (net realizable) value of $110 million. BEE is subject to a 25% income tax rate. Prepare a partial income statement begining with income from continuing operations.
Esquire Comic Book Company had income before tax of $1,250,000 in 2024 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accountin principles. The before-tax loss on disposal was $365,000. The division generated before-tax income from operations from the beginning of the year through disposal of $550,000. 2. The company incurred restructuring costs of $80,000 during the year. Required: Prepare the income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25% Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations Discontinued operations. Gain on sale of assets Income from operations of discontinued component Income tax benefit. Income tax expense
i have completed this in excel but would like to compare my answers
In its 2014 income statement, Tow Inc., reported proceeds from an officer's life insurance policy of $90,000 and depreciation of $250,000. Tow was the owner and beneficiary of the life insurance on its officer. Tow deducted depreciation of $370,000 in its 2014 income tax return when the tax rate was 30%. Data related to the reversal of the excess tax deduction for depreciation follow: Year 2015 2016 2017 2018 Reversal of Excess Tax Deduction for Depreciation $50,000 40,000 20,000 10,000 Enacted Tax Rates 35% 35 25 25 Tow has no other temporary differences. Required: In its December 31, 2014, balance sheet, what amount should Tow report as a deferred tax liability?

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