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Required information [The following information applies to the questions dlisplayed below.) Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Debit Credit a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of 1lawsuit h. Accumulated depreciation-Buildings 1. Loss from operating a discontinued segnent (pretax) J. Gain on insurance recovery of tornado danage k. Net sales 1. Depreciation expense-Buildings n. Correction of overstatenent of prior year's sales (pretax) n. Gain on sale of discontinued segnent's assets (pretax) o. Loss from settlement of 1lawsuit p. Income tax expense q. Cost of goods sold $ 14, 300 $ 34, 300 26,15e 44, 300 106,700 71,900 44, 300 175, 100 18,55e 29,420 1,001,500 52, 300 16,300 35,500 24,05e 485,5ee quired: Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items eled pretax. 30% Tax Effect Pretax After-Tax 5s from operating a discontinued segment 18,550 O 5,505 O 12,085 O 18,300 O 4,800 O 11,410 O orrection of overstatement of prior year's sales ain on sale of discontinued segment's assets 34,300 O 10,200 O 24,010 0

Required information [The following information applies to the questions dlisplayed below.) Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Debit Credit a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of 1lawsuit h. Accumulated depreciation-Buildings 1. Loss from operating a discontinued segnent (pretax) J. Gain on insurance recovery of tornado danage k. Net sales 1. Depreciation expense-Buildings n. Correction of overstatenent of prior year's sales (pretax) n. Gain on sale of discontinued segnent's assets (pretax) o. Loss from settlement of 1lawsuit p. Income tax expense q. Cost of goods sold $ 14, 300 $ 34, 300 26,15e 44, 300 106,700 71,900 44, 300 175, 100 18,55e 29,420 1,001,500 52, 300 16,300 35,500 24,05e 485,5ee quired: Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items eled pretax. 30% Tax Effect Pretax After-Tax 5s from operating a discontinued segment 18,550 O 5,505 O 12,085 O 18,300 O 4,800 O 11,410 O orrection of overstatement of prior year's sales ain on sale of discontinued segment's assets 34,300 O 10,200 O 24,010 0

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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Required information [The following information apples to the questions displayed below.] Selected account balances from the adjusted trial balance for Olinda Corporation as of Its calendar year-end December 31 follow. Debit Credit a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of 1lawsuit h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segnent (pretax) j. Gain on insurance recovery of tornado danage k. Net sales 1. Depreciation expense-Buildings n. Correction of overstatenent of prior year's sales (pretax) n. Gain on sale of discontinued segnent's assets (pretax) o. Loss from settlement of lawsuit p. Income tax expense q. Cost of goods sold 14,300 $ 34, 300 26,15e 44, 300 106, 70e 71,900 44, 300 175,100 18,55e 29,420 1,001,500 52, 300 16, 300 35,500 24,05e 485,5ee Required: 1. Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items labeled pretax. 30% Tax Effect After-Tax Pretax Loss from operating a discontinued segment 18,550 O 5,565 O 12,985 O Correction of overstatement of prior year's sales 18,300 O 34,300 4,890 O 11,410 O Gain on sale of discontinued segment's assets 10,200 8 24,010 0
Transcribed Image Text:Required information [The following information apples to the questions displayed below.] Selected account balances from the adjusted trial balance for Olinda Corporation as of Its calendar year-end December 31 follow. Debit Credit a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of 1lawsuit h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segnent (pretax) j. Gain on insurance recovery of tornado danage k. Net sales 1. Depreciation expense-Buildings n. Correction of overstatenent of prior year's sales (pretax) n. Gain on sale of discontinued segnent's assets (pretax) o. Loss from settlement of lawsuit p. Income tax expense q. Cost of goods sold 14,300 $ 34, 300 26,15e 44, 300 106, 70e 71,900 44, 300 175,100 18,55e 29,420 1,001,500 52, 300 16, 300 35,500 24,05e 485,5ee Required: 1. Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items labeled pretax. 30% Tax Effect After-Tax Pretax Loss from operating a discontinued segment 18,550 O 5,565 O 12,985 O Correction of overstatement of prior year's sales 18,300 O 34,300 4,890 O 11,410 O Gain on sale of discontinued segment's assets 10,200 8 24,010 0
Required information [The following information apples to the questions displayed below.] Selected account balances from the adjusted trial balance for Olinda Corporation as of Its calendar year-end December 31 follow. Debit Credit $ 14,300 a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings 1. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado danage k. Net sales 1. Depreciation expense-Buildings n. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segnent's assets (pretax) o. Loss from settlement of 1lawsuit p. Income tax expense q. Cost of goods sold $ 34,300 26,150 44, 300 106,700 71,980 44, 300 175,100 18,55e 29,420 1,001,500 52,300 16,300 35,5e0 24,85e 485,500 Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items labeled pretax. 2a. What is the amount of Income from continulng operatlons before Income taxes? 2c. What is the amount of Income from continulng operations? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Req 20 What is the amount of income from continuing operations before income taxes? Income from continuing operations before taxes IS 284,880 8 < Req 2A Req 2B >
Transcribed Image Text:Required information [The following information apples to the questions displayed below.] Selected account balances from the adjusted trial balance for Olinda Corporation as of Its calendar year-end December 31 follow. Debit Credit $ 14,300 a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings 1. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado danage k. Net sales 1. Depreciation expense-Buildings n. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segnent's assets (pretax) o. Loss from settlement of 1lawsuit p. Income tax expense q. Cost of goods sold $ 34,300 26,150 44, 300 106,700 71,980 44, 300 175,100 18,55e 29,420 1,001,500 52,300 16,300 35,5e0 24,85e 485,500 Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items labeled pretax. 2a. What is the amount of Income from continulng operatlons before Income taxes? 2c. What is the amount of Income from continulng operations? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Req 20 What is the amount of income from continuing operations before income taxes? Income from continuing operations before taxes IS 284,880 8 < Req 2A Req 2B >
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