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....

See similar textbooks

Similar questions

1) Zoro Products sold its Eastern Division at a loss of $1,000,000. Zoro’s tax rate is 25%. How will this loss be reported in Zoro’s financial statements? A : As a loss of $662,500, net of $187,500 income tax savings B :As a loss of $1,000,000 C :As a loss of $750,000, net of $250,000 income tax savings D :As a loss of $1,250,000, including income tax of $250,000 2) The following information was taken from the records of Prime Office Supplies Inc. immediately before and after the reacquisition of 10,000 shares.The average price per share before the reacquisition was $25. Assuming no other transactions took place, what would be the balance in the Retained Earnings account after the acquisition? A : $625,000 B : $375,000 C : $725,000 D : $525,0000 3) A corporation paid $8 per share for 9,000 of its own common shares that had originally sold for an average of $5. What will be the effect on total shareholders' equity? decrease of $27,000 B : increase of $45,000 C…
I want to correct answer general accounting
Income statement at what amount
Please provide this question solution
Provide correct answer
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
Misty Company reported the following before-tax items during the current year: Sales revenue Selling and administrative expenses. Restructuring charges. Loss on discontinued operations Misty's effective tax rate is 40%. What is Misty's net income for the current year? $148. $168. $112. None of these answer choices are correct. $600 250 20 50 I
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
Provide answer
In 2017, Flint 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 $ 670,000 (net of tax) while its online operations reported a profit of $ 3,320,000 (net of tax). Flint sold the store operations at the end of the year at a loss of $ 1,340,000 (net of tax). Prepare an income statement for 2017 beginning with line item "Income from continuing operations." FLINT CORPORATION Partial Income Statement $ %24 %24 > > >
In 2017, Monty 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 $750,000 (net of tax) while its online operations reported a profit of $3,430,000 (net of tax). Monty sold the store operations at the end of the year at a loss of $1,340,000 (net of tax). Prepare an income statement for 2017 beginning with line item “Income from continuing operations.”

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

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?