Need help this question please Sweet Treats Inc. sold its caramel division, resulting in a loss of$80,000. Assuming a tax rate of 30%, at what amount will the lossbe reported on the income statement?

Step 1: Definition of After-Tax Loss on Discontinued OperationsAn after-tax loss on discontinued…

Answered: Sweet Treats Inc. sold its caramel…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 19P: The Bookbinder Company had 500,000 cumulative operating losses prior to the beginning of last year....

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During the current year, Newtech Corporation sold a segment of its business at a loss of $225,000. Until it was sold, the segment had a current period operating loss of $200,000. The company had $750,000 from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $750,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40% income tax rate. Disregard earnings per share disclosures. Newtech Corporation Partial Income Statement Income from continuing operations Discontinued operations Current Year Loss from operations of discontinued segment (net of tax) $ 200,000 Loss on disposal of discontinued segment (net of tax) Net income $ 750,000 0 0 $ 0
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The Bookbinder Company had 500,000 cumulative operating losses prior to the beginning of last year. It had 100,000 in pre-tax earnings last year before using the past operating losses and has 300,000 in the current year before using any past operating losses. It projects 350,000 pre-tax earnings next year. a. How much taxable income was there last year? How much, if any, cumulative losses remained at the end of the last year? b. What is the taxable income in the current year? How much, if any, cumulative losses remain at the end of the current year? c. What is the projected taxable income for next year? How much, if any, cumulative losses are projected to remain at the end of next year?
In 2017, Blue Spruce Corporation discontinued its retail store operations to focus on its online opportunities. The elimination of these retail operations is properly considered a discontinued operation. During the current year, its store operations lost $ 600,000 (net of tax) while its online operations reported a profit of $ 3,080,000 (net of tax). Blue Spruce sold the store operations at the end of the year at a loss of $ 1,120,000 (net of tax). Prepare an income statement for 2017 beginning with line item “Income from continuing operations." BLUE SPRUCE CORPORATION Partial Income Statement $ %24 %24

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Sweet Treats Inc. sold its caramel division, resulting in a loss of $80,000. Assuming a tax rate of 30%, at what amount will the loss be reported on the income statement?