Operating income Gain on sale of division Provision for income taxes. Net income 2012 $900,000 450,000 $1,350,000 (405,000) $945,000 2011 $600,000 --------- $600,000 (180,000) $420,000 On January 1, 2012, Motor Corporation agreed to sell the assets and product line of one of its operating divisions for $1,600,000. The sale was consummated on December 31, 2012, and it resulted in a gain on disposition of $450,000. This division's pre-tax net osses were $320,000 in Required: Starting with operating income (before tax), prepare revised comparative income tatements for 2012 and 2011 showing appropriate details for gain (loss) from iscontinued operations.

Operating income Gain on sale of division Provision for income taxes. Net income 2012 $900,000 450,000 $1,350,000 (405,000) $945,000 2011 $600,000 --------- $600,000 (180,000) $420,000 On January 1, 2012, Motor Corporation agreed to sell the assets and product line of one of its operating divisions for $1,600,000. The sale was consummated on December 31, 2012, and it resulted in a gain on disposition of $450,000. This division's pre-tax net osses were $320,000 in Required: Starting with operating income (before tax), prepare revised comparative income tatements for 2012 and 2011 showing appropriate details for gain (loss) from iscontinued operations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Motor Corporation’s income statements for the years ended December 31, 2012 and 2011 included the following information before adjustments:

Operating income
Gain on sale of division.
Provision for income taxes.
Net income
2012
$900,000
450,000
$1,350,000
(405,000)
$945,000
2011
$600,000
---0------
$600,000
(180,000)
$420,000
On January 1, 2012, Motor Corporation agreed to sell the assets and product line of one
of its operating divisions for $1,600,000. The sale was consummated on December 31,
2012, and it resulted in a gain on disposition of $450,000. This division's pre-tax net
losses were $320,000 in Required:
Starting with operating income (before tax), prepare revised comparative income
statements for 2012 and 2011 showing appropriate details for gain (loss) from
discontinued operations.

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