Discontinued operations; disposal in subsequent year; solving for unknown • LO4–4 On September 17, 2018, Ziltech, Inc., entered into an agreement to sell one of its divisionsthat qualifies as a component of the entity according to generally accepted accounting principles. By December 31, 2018, the company’s fiscal year-end, the division had not yet been sold, but was considered held for sale. The net fair value (fair value minus costs to sell) of the division’s assets at the end of the year was $11 million. The pretax income from operations of the division during 2018 was $4 million. Pretax income from continuing operations for the year totaled $14 million. The income tax rate is 40%. Ziltech reported net income for the year of $7.2 million. Required: Determine the book value of the division’s assets on December 31, 2018.
Discontinued operations; disposal in subsequent year; solving for unknown • LO4–4 On September 17, 2018, Ziltech, Inc., entered into an agreement to sell one of its divisionsthat qualifies as a component of the entity according to generally accepted accounting principles. By December 31, 2018, the company’s fiscal year-end, the division had not yet been sold, but was considered held for sale. The net fair value (fair value minus costs to sell) of the division’s assets at the end of the year was $11 million. The pretax income from operations of the division during 2018 was $4 million. Pretax income from continuing operations for the year totaled $14 million. The income tax rate is 40%. Ziltech reported net income for the year of $7.2 million. Required: Determine the book value of the division’s assets on December 31, 2018.
Solution Summary: The author explains how to compute the book value of the divisions' assets of Z incorporation.
Discontinued operations; disposal in subsequent year; solving for unknown
• LO4–4
On September 17, 2018, Ziltech, Inc., entered into an agreement to sell one of its divisionsthat qualifies as a component of the entity according to generally accepted accounting principles. By December 31, 2018, the company’s fiscal year-end, the division had not yet been sold, but was considered held for sale. The net fair value (fair value minus costs to sell) of the division’s assets at the end of the year was $11 million. The pretax income from operations of the division during 2018 was $4 million. Pretax income from continuing operations for the year totaled $14 million. The income tax rate is 40%. Ziltech reported net income for the year of $7.2 million.
Required:
Determine the book value of the division’s assets on December 31, 2018.
Anti-Pandemic Pharma Co. Ltd. reports the following information in
its income statement:
Sales = $5,250,000;
Costs = $2, 173,000;
Other expenses = $187,400;
Depreciation expense = $79,000;
Interest expense= $53,555;
Taxes $76,000;
Dividends $69,000.
$136,700 worth of new shares were also issued during the year and
long-term debt worth $65,300 was redeemed.
a) Compute the cash flow from assets
b) Compute the net change in working capital
(325 marks)
QS 15-18 (Algo) Computing and recording over- or underapplied
overhead LO P4
A company applies overhead at a rate of 170% of direct labor cost. Actual overhead cost
for the current period is $1,081,900, and direct labor cost is $627,000.
1. Compute the under- or overapplied overhead.
2. Prepare the journal entry to close over- or underapplied overhead to Cost of Goods
Sold.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the under- or overapplied overhead.
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