JenStar's blu-ray disc segment was held for sale at year end. There is a formal plan in place to dispose of the component which is expected to occur within one year. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $1,500,000. The business segment qualifies as a component of the entity according to Section 3475 of the CPA Handbook. The book value of the assets of the segment was $1,200,000. The operating loss of the segment during 2015 was $350,000. JenStar's pretax income from continuing operations for the year totalled $640,000. The income tax rate is 40 percent. Calculate JenStar's net income for the year 2015. Please make sure your final answer(s) are accurate to the nearest whole number.

JenStar's blu-ray disc segment was held for sale at year end. There is a formal plan in place to dispose of the component which is expected to occur within one year. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $1,500,000. The business segment qualifies as a component of the entity according to Section 3475 of the CPA Handbook. The book value of the assets of the segment was $1,200,000. The operating loss of the segment during 2015 was $350,000. JenStar's pretax income from continuing operations for the year totalled $640,000. The income tax rate is 40 percent. Calculate JenStar's net income for the year 2015. Please make sure your final answer(s) are accurate to the nearest whole number.

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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