On December 31,2021 the end of the fiscal year, Califonia Mircotech 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 assests of the segment was $8 million. The loss from operations of the segment during 2021 was $3.6 million. Pretax income from continuing operation for the year totaled $5.8 million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement.
On December 31,2021 the end of the fiscal year, Califonia Mircotech 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 assests of the segment was $8 million. The loss from operations of the segment during 2021 was $3.6 million. Pretax income from continuing operation for the year totaled $5.8 million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement.
Assume instead that the estimated fair value of the segments assets, less costs to sell, on December 31 was $7 million rather than $10 million. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes.
Net profit is calculated by deducting the expenses from the revenues of the company.
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