On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $20 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. • The book value of the assets of the segment at the time of the sale was $18 million. • The loss from operations of the segment during 2024 was $4.5 million. • Pretax income from other continuing operations for the year totaled $7.2 million. • The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Loss from operations of discontinued component $ 7,200,000 1,800,000 $ 5,400,000
On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $20 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. • The book value of the assets of the segment at the time of the sale was $18 million. • The loss from operations of the segment during 2024 was $4.5 million. • Pretax income from other continuing operations for the year totaled $7.2 million. • The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Loss from operations of discontinued component $ 7,200,000 1,800,000 $ 5,400,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikrambahi
Transcribed Image Text:On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business
for $20 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the
following additional information.
• The book value of the assets of the segment at the time of the sale was $18 million.
• The loss from operations of the segment during 2024 was $4.5 million.
• Pretax income from other continuing operations for the year totaled $7.2 million.
• The income tax rate is 25%.
Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes.
Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example,
$4,000,000 rather than $4.
CALIFORNIA MICROTECH CORPORATION
Partial Income Statement
For the Year Ended December 31, 2024
Income from continuing operations before income taxes
Income tax expense
Income from continuing operations
Discontinued operations:
Loss from operations of discontinued component
$ 7,200,000
1,800,000
$
5,400,000
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