Sustainable income: Sustainable income is an amount of income that a company is able to obtain in future period. To explain: Sustainable income and its relationship with treatment of discontinued operations on the income statement

Question

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Answer 1

Question

Chapter 13, Problem 1Q

To determine

Sustainable income: Sustainable income is an amount of income that a company is able to obtain in future period.

To explain:

Sustainable income and its relationship with treatment of discontinued operations on the income statement

Expert Solution & Answer

Explanation of Solution

Sustainable income is the level of income that a company receives regularly from its normal operations. Company reports net income, sustainable income, and irregular items separately in the income statement to show the variation among the items.

Conclusion

Thus, the relationship among the sustainable income and other items are explained above.

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Headland Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed. Earnings to Weekly Vacation Pay to Be Employee July 31 Pay Received in August Mark Hamill $5,180 $280 Karen Robbins 4,480 230 $460 Brent Kirk 3,680 190 380 Alec Guinness 8,380 330 Ken Sprouse 8,980 410 820 Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $142,800 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee's wages in excess of $142,800. Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the…

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Answer 2

Question

Chapter 13, Problem 1Q

To determine

Sustainable income: Sustainable income is an amount of income that a company is able to obtain in future period.

To explain:

Sustainable income and its relationship with treatment of discontinued operations on the income statement

Expert Solution & Answer

Explanation of Solution

Sustainable income is the level of income that a company receives regularly from its normal operations. Company reports net income, sustainable income, and irregular items separately in the income statement to show the variation among the items.

Conclusion

Thus, the relationship among the sustainable income and other items are explained above.

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Answer 3

Question

Chapter 13, Problem 1Q

To determine

Sustainable income: Sustainable income is an amount of income that a company is able to obtain in future period.

To explain:

Sustainable income and its relationship with treatment of discontinued operations on the income statement

Expert Solution & Answer

Explanation of Solution

Sustainable income is the level of income that a company receives regularly from its normal operations. Company reports net income, sustainable income, and irregular items separately in the income statement to show the variation among the items.

Conclusion

Thus, the relationship among the sustainable income and other items are explained above.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 13, Problem 1Q

To determine

Sustainable income: Sustainable income is an amount of income that a company is able to obtain in future period.

To explain:

Sustainable income and its relationship with treatment of discontinued operations on the income statement

Expert Solution & Answer

Explanation of Solution

Sustainable income is the level of income that a company receives regularly from its normal operations. Company reports net income, sustainable income, and irregular items separately in the income statement to show the variation among the items.

Conclusion

Thus, the relationship among the sustainable income and other items are explained above.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 1Q

To determine

Sustainable income: Sustainable income is an amount of income that a company is able to obtain in future period.

To explain:

Sustainable income and its relationship with treatment of discontinued operations on the income statement

Expert Solution & Answer

Explanation of Solution

Sustainable income is the level of income that a company receives regularly from its normal operations. Company reports net income, sustainable income, and irregular items separately in the income statement to show the variation among the items.

Conclusion

Thus, the relationship among the sustainable income and other items are explained above.

Answer 6

Chapter 13, Problem 1Q

To determine

Sustainable income: Sustainable income is an amount of income that a company is able to obtain in future period.

To explain:

Sustainable income and its relationship with treatment of discontinued operations on the income statement

Expert Solution & Answer

Explanation of Solution

Sustainable income is the level of income that a company receives regularly from its normal operations. Company reports net income, sustainable income, and irregular items separately in the income statement to show the variation among the items.

Conclusion

Thus, the relationship among the sustainable income and other items are explained above.

Answer 7

Chapter 13, Problem 1Q

To determine

Sustainable income: Sustainable income is an amount of income that a company is able to obtain in future period.

To explain:

Sustainable income and its relationship with treatment of discontinued operations on the income statement

Answer 8

Expert Solution & Answer

Explanation of Solution

Sustainable income is the level of income that a company receives regularly from its normal operations. Company reports net income, sustainable income, and irregular items separately in the income statement to show the variation among the items.