Presented below are the condensed income statements of Maine Corporation for the years ended December 31, 20x2, and 20x1. 20x2 20x1 Sales P2,500,000 P2,450,000 Cost of Goods Sold 1,675,000 1,650,000 Gross Profit 825,000 800,000 Operating Expenses 337,500 325,000 Operating income 487,500 475,000 Gain on sale of division 100,000 - 587,500 475,000 Income tax expense 176,250 142,500 Net income P411,250 P332,500 On October 10, 20x2, Maine entered into an agreement to sell the assets of one (1) 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, 20x2, for P875,000. The book value of the segment’s assets was P775,000. The segment’s contribution to Maine’s operating income before tax for each year was as follows: 20x2 P56,875 loss 20x1 40,625 income REQUIRED: Prepare Other Comprehensive Income Statement for 20x1 and 20x2
Presented below are the condensed income statements of Maine Corporation for the years ended December 31, 20x2, and 20x1.
|
|
20x2 |
20x1 |
|
Sales |
P2,500,000 |
P2,450,000 |
|
Cost of Goods Sold |
1,675,000 |
1,650,000 |
|
Gross Profit |
825,000 |
800,000 |
|
Operating Expenses |
337,500 |
325,000 |
|
Operating income |
487,500 |
475,000 |
|
Gain on sale of division |
100,000 |
- |
|
|
587,500 |
475,000 |
|
Income tax expense |
176,250 |
142,500 |
|
Net income |
P411,250 |
P332,500 |
On October 10, 20x2, Maine entered into an agreement to sell the assets of one (1) of its geographical segments. The geographical segment comprises operations and
|
20x2 |
P56,875 loss |
|
20x1 |
40,625 income |
REQUIRED: Prepare Other Comprehensive Income Statement for 20x1 and 20x2.
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