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
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?
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A : As a loss of $662,500, net of $187,500 income tax savings
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B :As a loss of $1,000,000
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C :As a loss of $750,000, net of $250,000 income tax savings
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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
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A :
$625,000
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B :
$375,000
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C :
$725,000
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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?
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decrease of $27,000
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B :
increase of $45,000
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C :
decrease of $45,000
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D :
increase of $27,000
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