INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4.6BE
To determine
Concept Introduction: A single-step or multi-step income statement can be prepared for an income statement. All income from continuing operations' revenues and gains are listed in a single step, followed by a grouping of costs and losses. Several intermediate subtotals, such as gross profit, operating income, and income before taxes, are reported in the multiple-step format.
The partial income statement for R industries.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $9 million. The robotics business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $7 million. The income from operations of the segment during 2021 was $4 million. Pretax income from continuing operations for the year totaled $12 million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures.
On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of it's robotics business for $9 million. The robotics business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $7 million. The income from opertations of the segment during 2021 was $4 million. Pretax income from continuing operations for the year totaled $12 million. The income tax rate is 25%.
prepare the lower protion of the 2021 income statment beginning with income from continuing operations before income taxes. Ignore EPS disclosures.
What is the income from discontinued operations?
On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its
semiconductor business for $10 million. The semiconductor business segment qualifies as a component of the
entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations
of the segment during 2021 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8
million. The income tax rate is 25%.
Prepare the lower portion of the 2021 income statement beginning with income from continuing operations
before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be
indicated with a minus sign. Enter your answers in whole dollars and not in millions.)
CALIFORNIA MICROTECH CORPORATION
Partial Income Statement
For the Year Ended December 31, 2021
Income from continuing operations before income taxes
Income tax expense
Income from continuing operations
Discontinued operations:
Loss…
Chapter 4 Solutions
INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3QCh. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - What is meant by a change in accounting principle?...Ch. 4 - Prob. 4.10Q
Ch. 4 - The correction of a material error discovered in a...Ch. 4 - Define earnings per share (EPS). For which income...Ch. 4 - Prob. 4.13QCh. 4 - Describe the purpose of the statement of cash...Ch. 4 - Prob. 4.15QCh. 4 - Explain what is meant by noncash investing and...Ch. 4 - Distinguish between the direct method and the...Ch. 4 - Prob. 4.18QCh. 4 - Prob. 4.19QCh. 4 - Show the calculation of the following...Ch. 4 - Show the DuPont frameworks calculation of the...Ch. 4 - Prob. 4.22QCh. 4 - Prob. 4.23QCh. 4 - Prob. 4.1BECh. 4 - Prob. 4.2BECh. 4 - Prob. 4.3BECh. 4 - Prob. 4.4BECh. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Prob. 4.8BECh. 4 - Prob. 4.9BECh. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Statement of cash flows; indirect method LO48 Net...Ch. 4 - Prob. 4.14BECh. 4 - Prob. 4.15BECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.15ECh. 4 - Prob. 4.23ECh. 4 - Concepts; terminology LO41, LO42, LO43, LO44,...Ch. 4 - Inventory turnover; calculation and evaluation ...Ch. 4 - Prob. 4.29ECh. 4 - Prob. 4.30ECh. 4 - Prob. 4.31ECh. 4 - Prob. 4.32ECh. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.8PCh. 4 - Prob. 4.9PCh. 4 - Prob. 4.11PCh. 4 - Prob. 4.12PCh. 4 - Use of ratios to compare two companies in the same...Ch. 4 - Prob. 4.15PCh. 4 - Prob. 4.16PCh. 4 - Prob. 4.1DMPCh. 4 - Judgment Case 42 Restructuring costs LO43 The...Ch. 4 - Prob. 4.3DMPCh. 4 - Prob. 4.4DMPCh. 4 - Prob. 4.5DMPCh. 4 - Prob. 4.6DMPCh. 4 - Prob. 4.7DMPCh. 4 - IFRS Case 48 Statement of cash flows;...Ch. 4 - Judgment Case 49 Income statement presentation;...Ch. 4 - Prob. 4.10DMPCh. 4 - Prob. 4.13DMPCh. 4 - Prob. 4.15DMPCh. 4 - Prob. 4.17DMPCh. 4 - Prob. 4.18DMPCh. 4 - Prob. 2CCTC
Knowledge Booster
Similar questions
- Grevilla Corporation is a manufacturing company. The corporation has accumulated earnings of $950,000, and it can establish reasonable needs for $400,000 of that amount. Calculate the amount of the accumulated earnings tax (if any) that Grevilla Corporation is subject to for this year. $_____________arrow_forwardOn December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $10 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations of the segment during 2021 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8 million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures.arrow_forwardThe semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $19 million. The loss from operations of the segment during 2021 was $3.3 million. Pretax income from continuing operations for the year totaled $6.1 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated fair value of the segment’s assets, less costs to sell, on December 31 was $20 million. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)arrow_forward
- Pharoah Corporation, which follows IFRS, began operations on January 1, 2020. For the company's first fiscal year, Pharoah recorded pretax income for accounting purposes of $2,520,000. Depreciation of property, plant, and equipment for financial reporting purposes amounted to $126,000. CCA claimed on the company's tax return was $140,000. Pharoah was subject to a 35% income tax rate. Calculate Pharoah Corporation's taxable income and income tax payable for 2020. Taxable income for 2020 $ Income taxes payable for 2020 24 eTextbook and Media List of Accounts Prepare the journal entries to record the 2020 current and deferred income taxes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense.) (To record deferred tax expense.)arrow_forwardABC Company reported pretax financial income of P6,200,000 for the calendar year 2020. Included in the other income section of the income statement was P200,000 of interest revenue from government bonds held by the entity. The income statement also included depreciation expense of P500,000 for a machine that cost P3,000,000. The income tax return reported P600,000 as depreciation on the machine. The enacted tax rate is 30% for 2020 and future years. What is the current tax expense for 2020? (Round answer to whole number)arrow_forwardSki Company reported pretax financial income of P6,200,000 for the current year. Included in other income was P200,000 interest revenue from government bonds held by the entity. The income statement also included depreciation expense of P500,000 for a machine costing P3,000,000. The income tax return reported P600,000 as depreciation on the machine. What is the amount of income tax due for taxable year 2020?arrow_forward
- On September 1, 2021, Jacob Furniture Mart enters into a tentative agreement to sell the assets of its Office Furniture division. This division qualifies as a component of the entity according to GAAP regarding discontinued operations. The division's contribution to Jacob's operating income for 2021 was a $2.70 million loss before income tax. Jacob has an average tax rate of 25%. Assume that Jacob had not yet sold the division's assets by the end of 2021. Further, assume that the fair value less cost to sell of the division's assets at December 31, 2021, was $23.70 million and was expected to remain the same when the assets are sold in 2022. The book value of the division's assets was $18.73 million at the end of 2021. Required: 1. What would Jacob report in its 2021 income statement regarding the Office Furniture division? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) 2. What would Jacob report in its 2021 balance sheet…arrow_forwardAt the beginning of 2020, Best Inc. has two assets in Class 10. The cost of each asset was $72,000 and the Class 10 UCC balance was $56,472. On June 30, 2020, both of these assets are sold for a total of $41,500. What is the effect of the disposition on the Company's 2020 net business income? In addition, determine the January 1, 2021 UCC balance.arrow_forwardABC Inc. began operations on July 1,2019. The company recognizes income from long term construction contracts under the percentage of completion method in its financial statements and under the cost recovery method for income tax purposes. Income under each are as follows: 2019 Cost recovery- P 0 % of completion- P 700,000 2020 Cost recovery- P 800,000 % of completion- P 1,280,000 2021 Cost recovery- P 1,350,000 % of completion- P 1,700,000 The income tax rate was 32% for 2019. Based on a new law, for years after 2019, the tax rate is 34%. There are no other temporary differences. ABC should report in its December 31,2021 a deferred tax liability ofarrow_forward
- XYZ Company, a 'for-profit' business, had revenues of $60 million in 2019. Expenses other than depreciation totaled 55 percent of revenues, and depreciation expense was $5.0 million. XYZ Company, must pay taxes at a rate of 25 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Depreciation originally was $5 million; however, now the company has decided to be more conservative in its depreciation of its capital assets. XYZ now has $2.5 million in depreciation expense instead of $5 million. Based on this change in depreciation expense, what would XYZ's total profit margin Please don't provide solutions in imagearrow_forwardOn September 1, 2021, Jacob Furniture Mart enters into a tentative agreement to sell the assets of its Office Furniture division. This division qualifies as a component of the entity according to GAAP regarding discontinued operations. The division's contribution to Jacob's operating income for 2021 was a $3 million loss before income tax. Jacob has an average tax rate of 25%. Assume that Jacob had not yet sold the Office Furniture division by the end of 2021. Further, assume that the fair value less cost to sell of the division's assets at December 31, 2021, was $12 million and was expected to remain the same when the assets are sold in 2022. The book value of the division's assets was $19 million at the end of 2021. Required: 1. What would Jacob report in its 2021 income statement regarding the Office Furniture division? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) 2. What would Jacob report in its 2021 balance sheet regarding…arrow_forwardOn April 1, 2020, Desert Company decided to dispose of their Scorpion Division. Desert sold Scorpion Division to Cactus Corporation on November 30, 2020, for net gain on the sale of $138,984. From April 1st to November 30th, Scorpion Division generated a gain on operations of $164,246. The tax rate is 30%. Desert reported $807,304 in Income from Continuing Operations. What is the amount of Net Income Desert will report on its income statement? *round your answer to the nearest dollararrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
