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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 2
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:
ZTH net income for the year ended December 31, 2023 (including Horse division net income/loss for the
year)
Horse Division net income January 1 to September 15, 2023
Horse Division net loss September 15 to December 31, 2023
Fair value less cost to sell of Horse Division's net assets
Carrying value of Horse Division's net assets
$1,840,000
$325,000
($150,000)
$1,500,000
$1,750,000
ZTH'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 IFRS
Instructions
Prepare 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
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