A B90123415161718192021Problem 2On September 15, 2023, ZTH Inc.'s Board of Directors developed a formal plan to dispose of its Horse division and, the sale qualifies for discontinued operations treatment. OnDecember 1, 2023 ZTH found a buyer for the Horse Division. The agreed sales price was $1,500,000 and ownership will transfer on January 31, 2024. ZTH's year end is December 31.Pertinent data related to the Horse Division is as follows:ZTH net income for the year ended December 31, 2023 (including Horse division net income/loss for theyear)Horse Division net income January 1 to September 15, 2023Horse Division net loss September 15 to December 31, 2023Fair value less cost to sell of Horse Division's net assetsCarrying value of Horse Division's net assets$1,840,000$325,000($150,000)$1,500,000$1,750,000ZTH's tax rate is 25% on all sources of income/losses. Net incomes and net losses reported above are net of taxes. ZTH prepares its financial statements in accordance with IFRSInstructionsPrepare a partial statement of comprehensive income, starting with net income from continuing operations. Ignore EPS calculations.ZTH Inc.Statement of Comprehensive Income (Partial)For the Year Ended December 31, 2023

Transactions of the horse division must be recorded separately after the company has decided to…

On September 15, 2023, ZTH Inc.'s Board of Directors developed a formal plan to dispose of its Horse division and, the sale qualifies for discontinued operations treatment. On December 1, 2023 ZTH found a buyer for the Horse Division. The agreed sales price was $1,500,000 and ownership will transfer on January 31, 2024. ZTH's year end is December 31 Pertinent data related to the Horse Division is as follows:

On September 15, 2023, ZTH Inc.'s Board of Directors developed a formal plan to dispose of its Horse division and, the sale qualifies for discontinued operations treatment. On December 1, 2023 ZTH found a buyer for the Horse Division. The agreed sales price was $1,500,000 and ownership will transfer on January 31, 2024. ZTH's year end is December 31 Pertinent data related to the Horse Division is as follows:

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 75P

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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…
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