ADVANCED ACCOUNTING
12th Edition
ISBN: 9780357671221
Author: FISCHER
Publisher: CENGAGE L
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Chapter 4, Problem 8E
To determine
To prepare: Worksheet eliminations that would be made on the 2015 consolidated worksheet as a result of the real estate sale.
Introduction: Consolidation is a process in which financial statements of subsidiary is merged with financial statements of the parent. In this process, effect of intercompany transactions are eliminated.
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On May 31, 2016, the Arlene Corporation adopted aplan to sell Its cosmetics line fo business, considereda componentof theentity. The assets ofthecomponent were sold on October 13, 2016, for $1,120,000. The component generated operating income from January 1, 2016, through disposal of $300,000. In its income statement for the year ended December 31, 2016, the company reported before-tax income from operations ofadiscontinued component of $620,000. Whatwas the book value of the assets of the cosmetics component?
OA) $800,000 O B) $1,420,000
O c) $300,000
O D) Al of these answerchoices are incorrect.
Alucard Company has 2 divisions, Aye and Bee. Both qualify as business components. In 2018, the firm decided to
dispose of the assets and liabilities of division Bee and it is probable that the disposal will be completed early 2019. The
revenue and expenses of Alucard Company for 2018 and 2017 are as follows:
2018 2017
Sales-Aye 5,000,000 4,600,000
Total nontax expenses-Aye 4,400,000 4,100,000
Sales-Bee 3,500,000 5,100,000
Total nontax expenses-Bee 3,900,000 4,500,000
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disposal. The income tax rate is 30%. What amount of loss from discontinued operation should Alucard report in 2018?
On December 31, 2016, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $10 million. The 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 2016 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8 million. The income tax rate is 30%. Prepare the lower portion of the 2016 income statement beginning with pretax income from continuing operations. Ignore EPS disclosures.
Chapter 4 Solutions
ADVANCED ACCOUNTING
Ch. 4 - Prob. 1UTICh. 4 - Prob. 2UTICh. 4 - Prob. 3UTICh. 4 - Prob. 4UTICh. 4 - Prob. 5UTICh. 4 - Prob. 6UTICh. 4 - Sorel is an 80%-owned subsidiary of Pattern...Ch. 4 - Hide Corporation is a wholly owned subsidiary of...Ch. 4 - Prob. 2.2ECh. 4 - Prob. 3E
Ch. 4 - On January 1, 2016, Jungle Company sold a machine...Ch. 4 - Prob. 4.2ECh. 4 - Prob. 4.3ECh. 4 - Prob. 5.1ECh. 4 - Prob. 5.2ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9.1ECh. 4 - Prob. 9.2ECh. 4 - Prob. 10.1ECh. 4 - Prob. 10.2ECh. 4 - Prob. 4.1PCh. 4 - Prob. 4.2.1PCh. 4 - Prob. 4.2.2PCh. 4 - Prob. 4.3.1PCh. 4 - Prob. 4.3.2PCh. 4 - Prob. 4.4.1PCh. 4 - Prob. 4.4.2PCh. 4 - Prob. 4.7.1PCh. 4 - Prob. 4.7.2PCh. 4 - Prob. 4.8.1PCh. 4 - Prob. 4.8.2PCh. 4 - OnJanuary 1, 2015, Peanut Company acquired 80% of...Ch. 4 - Prob. 4.11PCh. 4 - Prob. 4.13.1PCh. 4 - Prob. 4.13.2PCh. 4 - Prob. 4.14.1PCh. 4 - Prob. 4.14.2PCh. 4 - Prob. 4A.1APCh. 4 - Prob. 4A.2APCh. 4 - Prob. 4.1.1C
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