ULIILI up apie f. Accumulated depreciation-Equipment g. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado damage k. Net sales 1. Depreciation expense-Buildings m. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit p. Income tax expense q. Cost of goods sold Required: 1. Compute the tax effects and after-tax amounts of the three items labeled pretax. Loss from operating a discontinued segment Correction of overstatement of prior year's sales Gain on sale of discontinued segment's assets Pretax 40% Tax Effect 18,950 52,700 16,700 24,450 ? 489,500 After-Tax 72,306 44,706 175,906 29,826 1,005,506 37,500

ULIILI up apie f. Accumulated depreciation-Equipment g. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado damage k. Net sales 1. Depreciation expense-Buildings m. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit p. Income tax expense q. Cost of goods sold Required: 1. Compute the tax effects and after-tax amounts of the three items labeled pretax. Loss from operating a discontinued segment Correction of overstatement of prior year's sales Gain on sale of discontinued segment's assets Pretax 40% Tax Effect 18,950 52,700 16,700 24,450 ? 489,500 After-Tax 72,306 44,706 175,906 29,826 1,005,506 37,500

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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VLIILI ug apie
f. Accumulated depreciation-Equipment
g. Gain from settlement of lawsuit
h. Accumulated depreciation-Buildings
i. Loss from operating a discontinued segment (pretax)
j. Gain on insurance recovery of tornado damage
k. Net sales
1. Depreciation expense-Buildings
m. Correction of overstatement of prior year's sales (pretax)
n. Gain on sale of discontinued segment's assets (pretax)
o. Loss from settlement of lawsuit
p. Income tax expense
q. Cost of goods sold
Required:
1. Compute the tax effects and after-tax amounts of the three items labeled pretax.
Loss from operating a discontinued segment
Correction of overstatement of prior year's sales
Gain on sale of discontinued segment's assets
Pretax
40% Tax Effect
U
18,950
52,700
16,700
24,450
?
489,500
After-Tax
72,300
44,700
175,900
29,820
1,005,500
37,500

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