On September 15, 2020, ZTH Inc.'s Board of Directors developed a formal plan to dispose of its Horse division and, the sale qualifies for discontinued operations treatement. On December 1, 2020 ZTH found a buyer for the Horse Division. The agreed sales price was $1,500,000 and ownership will transfer on Janury 31, 2021. ZTH's year end is December 31. Pertainent data related to the Horse Division is as follows: ZTH net income for the year ended December 31, 2020 (includes Horse division net income for the year) $1,840,000 Horse Division net income January 1-September 15, 2020 $325,000 Horse Division net loss September 15-December 31, 2020 -$150,000 Fair value less cost to sell of Horse Division's net assets $1,500,000 Carrying value of Horse Division's net assets $1,750,000 ZTH's tax rate is 25% on all sources of income. Net incomes and net losses reported above are net of taxes. ZTH prepares its financial statements in accordance with IFRS. Required: Prepare a partial statement of comprehensive income, starting with net income from continuing operations. Ignore EPS calculations.
On September 15, 2020, ZTH Inc.'s Board of Directors developed a formal plan to dispose of its Horse division and, the sale qualifies for discontinued operations treatement. On December 1, 2020 ZTH found a buyer for the Horse Division. The agreed sales price was $1,500,000 and ownership will transfer on Janury 31, 2021. ZTH's year end is December 31. Pertainent data related to the Horse Division is as follows:
ZTH net income for the year ended December 31, 2020 (includes Horse division net income for the year) $1,840,000
Horse Division net income January 1-September 15, 2020 $325,000
Horse Division net loss September 15-December 31, 2020 -$150,000
Fair value less cost to sell of Horse Division's net assets $1,500,000
Carrying value of Horse Division's net assets $1,750,000
ZTH's tax rate is 25% on all sources of income. Net incomes and net losses reported above are net of taxes. ZTH prepares its financial statements in accordance with IFRS. Required: Prepare a partial statement of comprehensive income, starting with net income from continuing operations. Ignore EPS calculations.
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