Presented below are the condensed income statement of Vital Corporation for the yearsended December 31, 2020 and 2019:202020195,000,000 4,900,0003,350,0001,650,000675,000975,000200,0001,175,000411,250763,750SalesCost of goods sold3,300,0001,600,000650,000950,000Gross incomeOperating expensesOperating incomeGain on sale of divisionNet income before income tax950,000332,500617.500Income tax expense (35%)Net incomeOn October 10, 2020, Chalangs entered into an agreement to sell the assets of one of itsgeographical segments. The geographical segment comprises operations and cash flowsthat can be clearly distinguished, operationally and for financial reporting purposes, fromthe rest of the company. The segment was sold on December 31, 2020, for P1,750,000.The book value of the segment's assets was P1,550,000. The segment's contribution toChalangs' operating income before tax for each year was as follows:2020113,750 loss81,250 income2019Assume that by December 31, 2020, the segment had not yet been sold but wasconsidered held for sale. The fair value of the segment's assets on December 31 wasP1,250,000. The post-tax loss from discontinued operations for 2020, based on theabove data, should be:

The vital corporation for the year December 31, 2020 and 2019:

Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 2019 Sales Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division 5,000,000 4,900,000 3,350,000 1,650,000 1,600,000 675,000 975,000 200,000 1,175,000 411,250 763,750 3,300,000 650,000 950,000 950,000 332,500 617.500 Net income before income tax Income tax expense (35%) Net income

Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 2019 Sales Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division 5,000,000 4,900,000 3,350,000 1,650,000 1,600,000 675,000 975,000 200,000 1,175,000 411,250 763,750 3,300,000 650,000 950,000 950,000 332,500 617.500 Net income before income tax Income tax expense (35%) Net income

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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Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 5,000,000 3.350,000 1,650,000 675,000 975,000 200,000 1,175,000 411,250 763.750 2019 4,900,000 3,300,000 1,600,000 650,000 950,000 Sales Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division 950,000 332,500 617.500 Net income before income tax Income tax expense (35%) Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The book value of the segment's assets was P1,550,000. The segment's contribution to Chalangs' operating income before tax for each year was as follows: 2020 113,750 loss 81,250 income 2019 Assume that by…