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 $18 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. 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 Income on discontinued operations Net income $ 3,300,000
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 $18 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. 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 Income on discontinued operations Net income $ 3,300,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $18 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.
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
Income on discontinued operations
Net income
$ 3,300,000
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