Big Balooga Inc. (BB) makes specialized diving equipment. Selected financial information for BB for the year ended December 31, 2019, follows. BB is a public company listed on the TSX. BB disposed of a subsidiary during the year that met the criteria of a discontinued operation and was classified accordingly. • The subsidiary's pre-tax loss was $400,000. The pre-tax gain on disposal was $200,000. • BB's pre-tax income for the year from continuing operations totalled $2,200,000. • B's effective tax rate is 20%. Required Prepare BB's statement of profit or loss for the year starting with income from continuing operations. Do not report EPS.

Big Balooga Inc. (BB) makes specialized diving equipment. Selected financial information for BB for the year ended December 31, 2019, follows. BB is a public company listed on the TSX. BB disposed of a subsidiary during the year that met the criteria of a discontinued operation and was classified accordingly. • The subsidiary's pre-tax loss was $400,000. The pre-tax gain on disposal was $200,000. • BB's pre-tax income for the year from continuing operations totalled $2,200,000. • B's effective tax rate is 20%. Required Prepare BB's statement of profit or loss for the year starting with income from continuing operations. Do not report EPS.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 68P

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Big Balooga Inc. (BB) makes specialized diving equipment. Selected financial information for BB for the year ended December 31, 2019, follows. BB is a public company listed on the TSX. BB disposed of a subsidiary during the year that met the criteria of a discontinued operation and was classified accordingly. The subsidiary's pre-tax loss was $400,000. The pre-tax gain on disposal was $200,000. • BB's pre-tax income for the year from continuing operations totalled $2,200,000. BB's effective tax rate is 20%. Required Prepare BB's statement of profit or loss for the year starting with income from continuing operations before tax. Do not report EPS.
WOODBRICKS CORP. decided on September 1, 2021 to dispose of a component of business. The component was sold on October 31, 2021. The net income of WOODBRICKS CORP. for the year 2021 included income of P8,000,000 from operating the discontinued segment from January 1 to the date of disposal. The entity incurred a loss of P3,000,000 on the October 31 sale of the business component. What amount should be reported as pretax income or loss from discontinued operations for 2021?
3. On December 1, 2021, Violet Company committed to a plan to dispose of the assets of a business component. The disposal meets the requirements to be classified as discontinued operation. On that date, the entity estimated that the loss from the disposition of the assets would be P700,000 and the component’s operating income was P200,000. What amount of pretax loss should be reported for discontinued operation for 2021? A. 900,000 B. 700,000 C. 200,000 D. 500,000 E. None of them
Splish Brothers Ltd. is a publicly listed company following IFRS. Assume that on December 31. 2020, the carrying amount of land on the statement of financial position (SFP) is $505.000. Management determines that the land's value in use is $435.000 and that the fair value less costs to sell is $400.000. Using the rational entity impairment model, prepare the journal entry required, if any, to record the impairment loss. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020
On April 30, 2020, Sa Young Nam Company approved a plan to dispose of a segment of its business. At this date, the entity is committed to a plan to sell the segment and classifies its assets as Held for Sale. The carrying value of the segment's net assets on April 30 was P800,000. In compliance with IFRS 5, no further depreciation or amortization was taken up on these assets until they were sold in November. During November, disposal costs incurred by Sa Young Nam totaled P22,500. During the period January 1, 2020 through November 30, 2020, the segment had total revenues of P4,500,000 and total selling and administrative expenses of P4,080,00o. On November 30, 2020, the segment's net assets were sold for P850,000. The income tax rate is 30%. What is the single amount reported as discontinued operations in Sa Young Nam' profit or loss for 2020? A. P447,500 B. P397,500 С. Р313,250 D. P278,250
[The following information applies to the questions displayed below.] Assume that TDW Corporation (calendar year-end) has 2021 taxable income of $650,000 for purposes of computing the §179 expense. The company acquired the following assets during 2021: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Machinery Computer equipment Furniture Total Placed in Service Basis September 12 $ 2,270,000 February 10 April 2 263,000 880,000 $ 3,413,000 b. What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2021 on the assets it placed in service in 2021, assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Maximum total depreciation deduction (including §179 expense)
On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $12 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. • The book value of the assets of the segment at the time of the sale was $10 million. • The loss from operations of the segment during 2024 was $3.7 million. • Pretax income from other continuing operations for the year totaled $5.9 million. • The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4. Answer is complete but not entirely correct. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from…
On December 1, 2021, Violet Company committed to a plan to dispose of the assets of a business component. The disposal meets the requirements to be classified as discontinued operation. On that date, the entity estimated that the loss from the disposition of the assets would be P700,000 and the component’s operating income was P200,000. What amount of pretax loss should be reported for discontinued operation for 2021?
An entity had the following events and transactions during 2020:- Depreciation for 2019 was understated by P500,000- A litigation settlement resulted in a loss of P2,000,000- The inventory on December 31, 2018 was overstated by P800,000- The entity disposed of a recreational division at a loss P1,500,000- The income tax rate is 30%What total amount of loss should be included in income from continuing operations for 2020? a. 2,000,000 c. 3,500,000 b. 1,400,000 d. 2,450,000 EXPLAIN THE ANSWER.
On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. • The book value of the assets of the segment at the time of the sale was $12 million. • The loss from operations of the segment during 2024 was $4.5 million. • Pretax income from other continuing operations for the year totaled $6.6 million. • The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example. $4,000,000 rather than $4. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes Income…
On September 1, 2019, Barkeley Co. enters into a tentative agreement to sell the assets of its office equipment division. This division qualifies as a component of the entity according to IFRS regarding discontinued operations. The division's contribution to Barkeley's operating income for 2019 was a $3 million loss before taxes. Barkeley has an average tax rate of 28%. Assume that Barkeley had not yet sold the division's assets by the end of 2019. Further, assume that the fair value less costs to sell of the division's assets at December 31, 2019, was $24 million and was expected to remain the same when the assets are sold in 2020. The book value of the division's assets was $19 million at the end of 2019. Under these assumptions, what would Jacob report in its 2019 income statement regarding the office equipment division? Explain where this information would be presented. [Show your reason based on IFRS standard and your computation]
On May 31, 2024, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the entity. The assets of the component were sold on October 13, 2024, for $1,120,000. The component generated operating income of $300,000 from January 1, 2024, through disposal. In its income statement for the year ended December 31, 2024, the company reported before-tax income from operations of a discontinued component of $620,000. What was the book value of the assets of the cosmetics component? Multiple Choice $800,000 $1,420,000 $300,000 All of these choices are incorrect.