### California Microtech Corporation Income Statement Preparation for 2024#### Situation Overview:On December 31, 2024, the end of the fiscal year, California Microtech Corporation designated its semiconductor business for sale. The estimated fair value of this segment’s assets, after deducting costs to sell, was $9 million on December 31. As per GAAP (Generally Accepted Accounting Principles), the semiconductor business segment is recognized as a component of the entity. Below is the relevant financial data provided:- **Book Value of Assets**: The book value of the assets of the segment at the time of the sale was $10 million.- **Operating Loss**: The loss from operations of the segment during 2024 amounted to $3.7 million.- **Pretax Income from Other Continuing Operations**: The pretax income from other continuing operations for the year totaled $5.9 million.- **Income Tax Rate**: The income tax rate is 25%.### Instructions:Prepare the lower portion of the 2024 income statement starting with the 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 should be written as $4,000,000 rather than $4.### Example Format for Income Statement:1. Income from continuing operations before income taxes: $5,900,0002. Income tax expense (calculated at 25%): $1,475,0003. Net income from continuing operations: $4,425,0004. Loss from discontinued operations (operations loss + impairment loss): - Operations loss: -$3,700,000 - Impairment loss (Book value - Fair value): -$1,000,000 ($10,000,000 - $9,000,000)5. Total loss from discontinued operations: -$4,700,0006. Net income (Net income from continuing operations - Total loss from discontinued operations): -$275,000Would result in the following statement: - **Income from continuing operations before income taxes**: $5,900,000 - **Income tax expense**: $1,475,000 - **Net income from continuing operations**: $4,425,000 - **Loss from discontinued operations**: ($ **California Microtech Corporation**### Partial Income Statement#### For the Year Ended December 31, 2024| **Description** | **Amount** ||------------------------------------------------------------------|------------|| **Income from continuing operations before income taxes** | || - | || - | || - | || | || **Income from continuing operations** | || **Discontinued operations:** | || - | || - | || - | || | |Explanation:This partial income statement from California Microtech Corporation is for the year ending on December 31, 2024. It includes sections for:1. **Income from continuing operations before income taxes** - This section showcases the income generated by the corporation's ongoing operations before accounting for income taxes. 2. **Income from continuing operations** - This part summarizes the net income from ongoing operations after accounting for relevant taxes and adjustments.3. **Discontinued operations** - Here, any income or loss from parts of the business that have been or are to be discontinued is recorded. This section helps in distinguishing the financial impact of operations that are no longer a part of the corporation.No specific numerical values are provided in this template, which suggests it might be used to teach students how to fill out such forms with appropriate financial data.

Answer:- Income statement meaning:- An income statement is basically on of the most important…

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 $9 million. The semiconductor busines 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 $10 million. • The loss from operations of the segment during 2024 was $3.7 million. • Pretax income from other continuing operations for the year totaled $5.9 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.

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 $9 million. The semiconductor busines 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 $10 million. • The loss from operations of the segment during 2024 was $3.7 million. • Pretax income from other continuing operations for the year totaled $5.9 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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.
Zoom owns 50 non-financial assets. It has the ability to purchase those assets from four markets (with same specification) and wishes to measure their fair values for the purpose of the revaluation policy. Four markets currently exist for this type of non-financial asset; Zoom has transacted regularly in three of them. At measurement date, the volume, prices and various costs of each non-financial asset in each respective market are as follows: Market Sale price Past volume with Zoom Total market volume Transaction costs Transport costs East $46,000 1,200 180,000 $500 $400 South $46,000 1,500 150,000 $400 $700 West $45,000 0 200,000 $300 $600 North $45,000 1,700 120,000 $200 $500 Based on the above information, which market is the most advantageous market (if principle market is restricted) and what is the fair value of all 50 non-financial assets under the most advantageous market as at the measurement date assuming that the current use of this type of non-financial…
Dhapa
Fleming Corporation acquired Out-of-Sight Products on January 1, 2025 for $4,000,000, and recorded goodwill of $750,000 as a result of that purchase. At December 31, 2025, the Out-of- Sight Products Division had a fair value of $3,400,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $2,900,000 at that time. What amount of loss on impairment of goodwill should Fleming record in 2025? O $-0- O $250,000 O $350,000 O $600,000
On January 1, 2024, Ghosh Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Ghosh. • The equipment cost Ghosh $956,600 and has an expected useful life of five years. • Ghosh expects the residual value at December 31, 2027, will be $300,600. • Negotiations led to the lessee guaranteeing a $340,600 residual value. Equal payments under the finance/sales-type lease are $200,600 and are due on December 31 of each year with the first payment being made on December 31, 2024. • Karrier is aware that Ghosh used a 5% interest rate when calculating lease payments. Note: Use Excel, or a financial calculator. Required: 1. Prepare the appropriate entries for both Karrier and Ghosh on January 1, 2024, to record the lease. 2. Prepare all appropriate entries for both Karrier and Ghosh on December 31, 2024, related to the lease. Complete this question by entering your answers…
On September 17, 2024, Ziltech, Incorporated, entered into an agreement to sell one of its divisions that qualifies as a component of the entity according to generally accepted accounting principles. By December 31, 2024, the company's fiscal year-end, the division had not yet been sold, but was considered held for sale. The net fair value (fair value minus costs to sell) of the division's assets at the end of the year was $11 million. The pretax income from operations of the division during 2024 was $4 million. Pretax income from continuing operations for the year totaled $14 million. The income tax rate is 25%. Ziltech reported net income for the year of $7.2 million. Required: Determine the book value of the division's assets on December 31, 2024. Note: Enter your answer in whole dollars and not in millions. For example, $4,000,000 rather than $4.
A5
On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roque more Corporation for $910,000 and $405,000, respectively. On the date of the sale, the book value of the patent was $ $200,000, and the book value of the equipment was $496,000 (cost of $726,000 less accumulated depreciation of $230,000) Prepare the journal entries to record the sales of the patent and equipment < 1 2 Record the sale of the equipment for $405,000. On the date of the sale, the book value of the equipment was $496,000 (cost of $726,000 less accumulated depreciation of $230,000). Note: Enter debits before credits. Event 2 General Journal Debit Credit
Information concerning Blue Corporation's intangible assets is as follows. On January 1, 2025, Blue signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $100,000. Of this amount, $20,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $20,000 each, beginning January 1, 2026. The agreement provides that the down payment is not refundable and no future services are required f the franchisor. The present value at January 1, 2025, of the 4 annual payments discounted at 15% (the implicit rate for a loan of this type) is $57,100. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Blue's revenue from the franchise for 2025 was $870,000. Blue estimates the useful life of the franchise to be 10 years. (Hint: You may want to refer to Chapter 18 to determine the proper accounting treatment for the franchise fee and payments.) Blue incurred…
On December 31, 2022, ALR, Inc. classified one of its plant assets (land) as held for sale. The carrying value of the land as of that date was $2,000,000. The fair value less selling costs on that date was $1,800,000. As of December 31, 2023, the company had not sold the asset, so it was still classified as held for sale. fair value net of selling costs as of December 31, 2023, was $2,050,000. Based on this information, indicate how ALR should report the asset on the December 31, 2022, and December 31, 2023, balance sheets. Prepare any journal entries required. Begin by recording the journal entry to reclassify the land held for sale on December 31, 2022. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the table blank.) Аccount December 31. 2022 Now, record the journal entry to write down the asset on December 31, 2022.…
Denger
On September 17, 2024, Ziltech, Incorporated, entered into an agreement to sell one of its divisions that qualifies as a component of the entity according to generally accepted accounting principles. By December 31, 2024, the company's fiscal year - end, the division had not yet been sold, but was considered held for sale. The net fair value (fair value minus costs to sell) of the division's assets at the end of the year was $10 million. The pretax income from operations of the division during 2024 was $2 million. Pretax income from continuing operations for the year totaled $ 13 million. The income tax rate is 25 %. Ziltech reported net income for the year of $5.1 million. Required: Determine the book value of the division's assets on December 31, 2024.