On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor bu for $15 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 $12 million. • The loss from operations of the segment during 2024 was $4.5 million. • Pretax income from other continuing operations for the year totaled $6.6 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 Income tax benefit Loss on discontinued operations Net income 4,500,000 (1,650,000) $6,600,000 1,650,000 $ 4,950,000 Next >

On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor bu for $15 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 $12 million. • The loss from operations of the segment during 2024 was $4.5 million. • Pretax income from other continuing operations for the year totaled $6.6 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 Income tax benefit Loss on discontinued operations Net income 4,500,000 (1,650,000) $6,600,000 1,650,000 $ 4,950,000 Next >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Denger

A: The objective of the question is to determine the journal entry required to record the increase in…

Q: In its 2023 annual report, Waterway Limited reports beginning-of-the-year total assets of $2,226…

A: The assets turnover is calculated as net sales divided by the average assets. Asset Turnover Ratio =…

Q: Suppose during 2022 that Federal Express reported the following information (in millions): net sales…

A: Asset Turnover measures a company's efficiency in utilizing its assets to generate sales. It is…

Q: 5. Fortune paid $570,000 cash to acquire 100 percent of Sorden Company's net assets on January 1,…

A: Net Assets of Fair Value = Total Asset - Total LiabilitiesNet Assets of Fair Value = $660,000 -…

Q: On April 1, 2020, Desert Company decided to dispose of their Scorpion Division. Desert sold Scorpion…

A: Net income is a after tax income. In the given question, there are incomes from continuing and…

Q: Swifty Corporation's pre-tax accounting income of $748,000 for the year 2023 included the following…

A: Detailed explanation: Swifty's normalized earnings for 2023 were calculated by making adjustments to…

Q: AP Trayer Corporation has income from continuing operations of $290,000 for the year ended December…

A: For investors and analysts, comprehensive income is crucial because it depicts a company's whole…

Q: ABEL company’s statement of profit or loss for the year ended 31 December 2019 showed a net profit…

A: Given: Net profit =Shs83,600,000Purchase of a motor van debited to the motor expenses…

Q: Atoms, Inc. committed to sell a division on March 22, 2022. It sold the division on June 14, 2024.…

A: A component of a business that has been discontinued or is being held for sale can have its…

Q: During 2023, Door Inc. decided to dispose of Bell Division, which is considered a separate reporting…

A: The company is doing business to generate a profit. Sometimes, a company operates in two or more…

Q: During 2022, Concord Corporation reported net sales of $4,674,600 and net income of $1,400,000. Its…

A: The assets turnover ratio indicates the business entity's efficiency in utilizing the total assets…

Q: On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its…

A: Introduction:-A partial income statement is a financial document that professional may prepare for a…

Q: In 2020, Gain Inc. purchased all of the assets of Cookie’s business. As part of this purchase, Gain…

A: Step 1 Amortization typically refers to the process of writing down the value of an intangible asset…

Q: After first recording any impairment losses on plant and equipment and the patent. Required: 1.…

A: The financial indicator known as book value, commonly referred to as shareholder's equity, shows the…

Q: The following information concerns the intangible assets of Baez Corporation: On June 30, 2024, Baez…

A: Journal entry is the first stage of accounting process.Journal entry used to record business…

Q: Trayer Corporation has income from continuing operations of $254,000 for the year ended December 31,…

A: Income from continuing operations: It is the after tax income generated by a company from its…

Q: Prepare the journal entry to record the sale of the building after having used the cost model.…

A: Commercial organizations used journal entries to record their financial transactions in their…

Q: On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the…

A: A partial income statement is a financial document that professional may prepare for a company to…

Q: On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its…

A: Introduction:-A partial income statement is a financial document that professional may prepare for a…

Q: On January 1, 2025, John Paul Jones Corp. purchased 30% of Sky Tech Inc. for $45 million. This…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: Flounder Corp. has income from continuing operations of $246,500 for the year ended December 31,…

A: Comprehensive Income includes Income statement and the other comprehensive income for the period…

Q: During 2023, Blue Corp. disposed of Blackberry Division, a major segment of its business. Blue…

A: Income statement is the financial statement which is prepared to show the profitability of the…

Q: On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the…

A: An income statement is one of the financial statements of a company that shows the company's…

Question

On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business
for $15 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 $12 million.
• The loss from operations of the segment during 2024 was $4.5 million.
• Pretax income from other continuing operations for the year totaled $6.6 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
Income tax benefit
Loss on discontinued operations
Net income
4,500,000
(1,650,000)
$ 6,600,000
1,650,000
$ 4,950,000
2 Prev
4 of 5
Next >

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Income statement

VIEW

Step 2: Formula sheet to prepare the lower portion of the 2013 income statement

VIEW

Step 3: Working Note :

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its semiconductor business for sale at year-end. The estimated fair value of the segment’s assets, less costs to sell, on December 31 was $13 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 $16 million. The loss from operations of the segment during 2024 was $4.4 million. Pretax income from other continuing operations for the year totaled $7.6 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.
In 2023, Antle Incorporated had acquired Demski Company and recorded goodwill of $245 million as a result. The net assets (including goodwill) from Antle's acquisition of Demski Company had a 2024 year-end book value of $580 million. Antle assessed the fair value of Demski reporting unit at this date to be $700 million, while the fair value of all of Demski's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The amount of the impairment loss that Antle would report for goodwill at the end of 2024 is: Multiple Choice $0. $120 million. $150 million. $95 million.
Dhapa
Suppose during 2022 that Federal Express reported the following information (in millions): net sales of $34,400 and net income of $88. Its balance sheet also showed total assets at the beginning of the year of $24,580 and total assets at the end of the year of $23,300. Calculate the asset turnover and return on assets. (Round asset turnover to 2 decimal places, e.g. 6.25 and return on assets to 1 decimal place, e.g. 17.5%.) Asset turnover Return on assets times %
On January 2, 2030, Esko Corp. acquired all the net assets of Tolits Inc. Esko Corp. paid P6,000,000 for the net assets of Tolits Inc. On this date, the following accounts of Tolits, Inc. are as follows: Cash – P150,000; Accounts Receivable – P1,600,000; Inventories – P600,000; Property, plant, and equipment – P2,600,000; Accounts Payable – P1,400,000. On the date of acquisition, it was determined that the fair values of inventories and property, plant, and equipment were P660,000 and P3,400,000, respectively. Esko Corp. has estimated a restructuring provision of P500,000 representing costs of exiting the activity of Tolits Inc., cost of terminating the employees of Tolits Inc. Compute the goodwill or gain from acquisition. * a. P 2,950,000 b. P 1,590,000 c. P 2,090,000 d. P 2,450,000 pls. answer it asap thank you:)
On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $10 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations of the segment during 2021 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8 million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.) CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Loss…
A5
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $19 million. The loss from operations of the segment during 2021 was $3.3 million. Pretax income from continuing operations for the year totaled $6.1 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated fair value of the segment’s assets, less costs to sell, on December 31 was $20 million. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)
IIn 2018, Martin Corp. acquired Glynco and recorded goodwill of $100 million. Martin considers Glynco a separate reporting unit. By the end of 2021, the net assets (including goodwill) of Glynco are $320 million and its estimated fair value is $260 million. The amount of the impairment loss that Martin would record for goodwill at the end of 2021 is:
Action, Inc. acquired the following assets and assumed the related liabilities of Slacker Corp. in a transaction completed on February 16, 2023: Accounts receivable, net Inventories Property, plant & equipment Non-amortizable intangible assets Carrying value for Slacker Current liabilities Noncurrent liabilities $ 11,000 $ 50,000 $ 100,000 $ 200,000 Fair Value $ 10,000 $ 50,000 $ 150,000 $ 225,000 $ (40,000) $(200,000) $ (40,000) $(200,000) Action paid $205,000 in cash for all of the above from Slacker. a) Determine if Action must record any goodwill. Show any calculations. b) Record the acquisition in Action's general journal on Feb. 16, 2023. Show: any calculations. c) Prepare any adjusting entry for amortization required as of the fiscal year end, December 31, 2023. If no amortization is required, explain why.
On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $9 million. The robotics business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $7 million. The income from operations of the segment during 2021 was $4 million. Pretax income from continuing operations for the year totaled $12 million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures.
At the beginning of 2022, Metatec Incorporated acquired Ellison Technology Corporation for $650 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) Patent Goodwill $ 155 million 45 million 120 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a five-year useful life, no residual value, and is amortized using the straight-line method. At the end of 2024, a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined: Plant and equipment: Undiscounted sum of future cash flows Fair value Patent: Undiscounted sum of future cash flows Fair value Goodwill: Fair value of Ellison Technology Corporation Book value of Ellison's net assets (excluding goodwill) Book value of Ellison's net…