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Required: 1. Assuming that the company's income tax rate is 30%, what are the tax effects and after-tax measures of the items labelled as pre- tax? (Negative answers should be indicated by a minus sign.) Cumulative effect of change in accounting principle Loss from operating a discontinued operation Correction of overstatement of prior year's sales Gain on sale of discontinued operation's assets Pre-tax 30% Tax Effect After-Tax Measure

Required: 1. Assuming that the company's income tax rate is 30%, what are the tax effects and after-tax measures of the items labelled as pre- tax? (Negative answers should be indicated by a minus sign.) Cumulative effect of change in accounting principle Loss from operating a discontinued operation Correction of overstatement of prior year's sales Gain on sale of discontinued operation's assets Pre-tax 30% Tax Effect After-Tax Measure

FINANCIAL ACCOUNTING
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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The following table shows the balances from various accounts in the adjusted trial balance for UniLink Telecom Corp. as of December 31, 2023: a. Interest income b. Depreciation expense, equipment C. Loss on sale of office equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation, equipment g. Gain from settling a lawsuit h. Cumulative effect of change in accounting principle (pre-tax) i. Accumulated depreciation, buildings j. Loss from operating a discontinued operation (pre-tax) k. Gain on expropriation of land and building by government 1. Sales m. Depreciation expense, buildings n. O. Correction of overstatement of prior year's sales (pre-tax) Gain on sale of discontinued operation's assets (pre-tax) Loss from settling a lawsuit P. 9. r. Income taxes expense Cost of goods sold $ Debit 89,000 60,700 236,600 48, 100 130,900 37,300 58,900 ? 1,196,000 $ Credit 30,100 102, 100 189,400 103,400 153,150 405,400 69,700 2,394, 200 80,500 Required: 1. Assuming that the company's income tax rate is 30%, what are the tax effects and after-tax measures of the items labelled as pre- tax? (Negative answers should be indicated by a minus sign.)
Transcribed Image Text:The following table shows the balances from various accounts in the adjusted trial balance for UniLink Telecom Corp. as of December 31, 2023: a. Interest income b. Depreciation expense, equipment C. Loss on sale of office equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation, equipment g. Gain from settling a lawsuit h. Cumulative effect of change in accounting principle (pre-tax) i. Accumulated depreciation, buildings j. Loss from operating a discontinued operation (pre-tax) k. Gain on expropriation of land and building by government 1. Sales m. Depreciation expense, buildings n. O. Correction of overstatement of prior year's sales (pre-tax) Gain on sale of discontinued operation's assets (pre-tax) Loss from settling a lawsuit P. 9. r. Income taxes expense Cost of goods sold $ Debit 89,000 60,700 236,600 48, 100 130,900 37,300 58,900 ? 1,196,000 $ Credit 30,100 102, 100 189,400 103,400 153,150 405,400 69,700 2,394, 200 80,500 Required: 1. Assuming that the company's income tax rate is 30%, what are the tax effects and after-tax measures of the items labelled as pre- tax? (Negative answers should be indicated by a minus sign.)
Required: 1. Assuming that the company's income tax rate is 30%, what are the tax effects and after-tax measures of the items labelled as pre- tax? (Negative answers should be indicated by a minus sign.) Cumulative effect of change in accounting principle Loss from operating a discontinued operation Correction of overstatement of prior year's sales Gain on sale of discontinued operation's assets Show Transcribed Text Operating expenses: Pre-tax Other revenues and expenses: 30% Tax Effect 2. Prepare a multi-step income statement for the year ended December 31, 2023. (Amounts to be deducted should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section.) UNILINK TELECOM CORP. Income Statement For Year Ended December 31, 2023 3 After-Tax Measure
Transcribed Image Text:Required: 1. Assuming that the company's income tax rate is 30%, what are the tax effects and after-tax measures of the items labelled as pre- tax? (Negative answers should be indicated by a minus sign.) Cumulative effect of change in accounting principle Loss from operating a discontinued operation Correction of overstatement of prior year's sales Gain on sale of discontinued operation's assets Show Transcribed Text Operating expenses: Pre-tax Other revenues and expenses: 30% Tax Effect 2. Prepare a multi-step income statement for the year ended December 31, 2023. (Amounts to be deducted should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section.) UNILINK TELECOM CORP. Income Statement For Year Ended December 31, 2023 3 After-Tax Measure
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