Financial Accounting
9th Edition
ISBN: 9781259738692
Author: Libby
Publisher: MCG
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Chapter 3, Problem 6MCQ
To determine
Ascertain the impact of the transaction analysis of operating expense for 2016.
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Kingbird Inc. reported income from continuing operations before taxes during 2017 of $2,250,000. Additional transactions
Occurring in 2017 but not considered in the $2,250,000 are as follows.
A gain of $125,000 (pretax) as a result of selling securities from its investment portfolio.
A$27,000 loss before taxes as a result of operating the discontinued clothing division during 2017.
A loss of $78,000 before taxes as a result of disposing of its clothing division. Assume that this transaction meets the
criteria for discontinued operations.
An uninsured $122,000 loss due to a fire.
At the beginning of 2015, the corporation purchased a machine for $260,000 (salvage value of $20,000) that had a useful
life of 10 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage
value in computing the depreciation base.
The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect of this…
Kingbird Inc. reported income from continuing operations before taxes during 2017 of $2,250,000. Additional transactions occurring in 2017 but not considered in the $2,250,000 are as follows.
1.
A gain of $125,000 (pretax) as a result of selling securities from its investment portfolio.
2.
A $27,000 loss before taxes as a result of operating the discontinued clothing division during 2017.
3.
A loss of $78,000 before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria for discontinued operations.
4.
An uninsured $122,000 loss due to a fire.
5.
At the beginning of 2015, the corporation purchased a machine for $260,000 (salvage value of $20,000) that had a useful life of 10 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base.
6.
The corporation decided to change its method of inventory pricing from average-cost…
Shamrock Inc. reported income from continuing operations before taxes during 2017 of $ 2,175,000. Additional transactions occurring in 2017 but not considered in the $ 2,175,000 are as follows.
1.
A gain of $ 109,000 (pretax) as a result of selling securities from its investment portfolio.
2.
A $ 27,000 loss before taxes as a result of operating the discontinued clothing division during 2017.
3.
A loss of $ 88,000 before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria for discontinued operations.
4.
An uninsured $ 128,000 loss due to a fire.
5.
At the beginning of 2015, the corporation purchased a machine for $ 220,000 (salvage value of $ 40,000) that had a useful life of 10 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base.
6.
The corporation decided to change its method of inventory pricing from…
Chapter 3 Solutions
Financial Accounting
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Write the income statement equation and define...Ch. 3 - Explain the difference between a. Revenues and...Ch. 3 - Define accrual accounting and contrast it with...Ch. 3 - Prob. 6QCh. 3 - Explain the expense recognition principle.Ch. 3 - Explain why stockholders equity is increased by...Ch. 3 - Explain why revenues are recorded as credits and...Ch. 3 - Complete the following matrix by entering either...
Ch. 3 - Complete the following matrix by entering either...Ch. 3 - Prob. 12QCh. 3 - State the equation for the net profit margin ratio...Ch. 3 - Which of the following is not a specific account...Ch. 3 - Which of the following is not one of the criteria...Ch. 3 - The expense recognition principle controls a....Ch. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Prob. 10MCQCh. 3 - Prob. 3.1MECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues The following transactions...Ch. 3 - Identifying Expenses The following transactions...Ch. 3 - Prob. 3.5MECh. 3 - Prob. 3.6MECh. 3 - Determining the Financial Statement Effects of...Ch. 3 - Prob. 3.8MECh. 3 - Prob. 3.9MECh. 3 - Identifying the Operating Activities in a...Ch. 3 - Prob. 3.11MECh. 3 - Prob. 3.1ECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues Revenues are normally...Ch. 3 - Identifying Expenses Revenues are normally...Ch. 3 - Prob. 3.5ECh. 3 - Determining Financial Statement Effects of Various...Ch. 3 - Recording Journal Entries Sysco, formed in 1969,...Ch. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Preparing an Income Statement Refer to E3-10....Ch. 3 - Prob. 3.12ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.1PCh. 3 - Recording Journal Entries (AP3-2) Ryan Terlecki...Ch. 3 - Prob. 3.3PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5PCh. 3 - Prob. 3.6PCh. 3 - Prob. 3.7PCh. 3 - Recording Nonquantitative Journal Entries (P3-1)...Ch. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Accounting for Operating Activities in a New...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Comparing Companies within an Industry Refer to...Ch. 3 - Analyzing a Company over Time Refer to the annual...Ch. 3 - Prob. 3.6CPCh. 3 - Evaluating an Ethical Dilemma Mike Lynch is the...
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