In 2017, Flint Corporation discontinued its retail store operations to focus on its online opportunities. The elimination of these retail operations is properly considered a discontinued operation. During the current year, its store operations lost $ 670,000 (net of tax) while its online operations reported a profit of $ 3,320,000 (net of tax). Flint sold the store operations at the end of the year at a loss of $ 1,340,000 (net of tax). Prepare an income statement for 2017 beginning with line item "Income from continuing operations." FLINT CORPORATION Partial Income Statement 2$ 2$ $
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- Checkpoint Systems is a leading provider of source tagging, handheld labeling systems, retail merchandising systems, and bar-code labeling systems. In a press release, Checkpoint stated the following: GAAP reported net loss for the fourth quarter of 2004 was 29.3 million, or 0.78 per diluted share, compared to net earnings of 4.5 million, or 0.13 per diluted share, for the fourth quarter 2003. Excluding impairment and restructuring charges, net of tax, the Companys net income for the fourth quarter 2004 was 0.30 per diluted share, compared to 0.27 per diluted share in the fourth quarter 2003. Calculate the amount of the impairment and restructuring charges Checkpoint reported in 2004 and 2003. Discuss why the firm reported earnings both including and excluding impairment and restructuring charges.In 2017, Pronghorn Corporation discontinued its retail store operations to focus on its online opportunities. The elimination of these retail operations is properly considered a discontinued operation. During the current year, its store operations lost $630,000 (net of tax) while its online operations reported a profit of $3,530,000 (net of tax). Pronghorn sold the store operations at the end of the year at a loss of $1,380,000 (net of tax). Prepare an income statement for 2017 beginning with line item “Income from continuing operations.” PRONGHORN CORPORATIONPartial Income Statementchoose the accounting period December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 select an income statement item Discontinued OperationsEarnings Per ShareIncome From Continuing OperationsLoss From Disposal of Store Operations Net of TaxLoss…In 2017, Monty Corporation discontinued its retail store operations to focus on its online opportunities. The elimination of these retail operations is properly considered a discontinued operation. During the current year, its store operations lost $750,000 (net of tax) while its online operations reported a profit of $3,430,000 (net of tax). Monty sold the store operations at the end of the year at a loss of $1,340,000 (net of tax). Prepare an income statement for 2017 beginning with line item “Income from continuing operations.”
- On May 31, 2015, top management of Stafford Manufacturing Co. decided to dispose of an unprofitable business component. An operating loss of $210,000 associated with the component was incurred during the year. The plant facilities associated with the business segment were sold on November 30, and a $23,000 gain was realized on the sale of the plant assets. Assuming a 30% tax rate, prepare the discontinued operations section of Stafford Manufacturing Co.’s income statement for the year ending December 31, 2015. What additional information about the discontinued segment would be provided by Stafford Manufacturing if it were reporting using the accounting standards of the United Kingdom?In 2017, Kerry Corp's financial statement showed accrued losses on disposal of unused plant facilities of $3,600,000. The facilities were sold in December 2018 and a $3,600,000 loss was recognized for tax purposes then. Also in 2018, Kerry Corp's paid $150,000 for a two-year life insurance policy for their CEO Kerry, and the company was the beneficiary. Assuming that the enacted tax rate is 35% in both 2017 and 2018. Show the steps for the amount reported on December 31, 2017 as net deferred income taxes on the balance sheetPresented below is information related to Blossom Company as of and for the year ended December 31, 2017. This was Blossom Company’s first year of operations. (Ignore income tax effects.) ● Sales revenue $1,500,000 ● Cost of goods sold 600,000 ● Selling and administrative expenses 300,000 ● Loss on sale of plant assets 60,000 ● Unrealized gain on available-for-sale investments 12,000 ● Interest expense 5,000 ● Interest revenue 3,500 ● Loss on discontinued operations 2,000 ● Allocation to noncontrolling interest 7,500 ● Dividends declared and paid 26,000 Compute the following: (a) Income from continuing operations $enter a dollar amount (b) Net income $enter a dollar amount (c) Net income attributable to Blossom Company’s controlling shareholders $enter a dollar amount (d) Comprehensive income $enter a dollar amount (e) Retained earnings balance at December 31,…
- At Carla Vista Co., events and transactions during 2020 included the following. The tax rate for all items is 20%.(1) Depreciation for 2018 was found to be understated by $120500.(2) A strike by the employees of a supplier resulted in a loss of $100800.(3) The inventory at December 31, 2018 was overstated by $169800.(4) A disposal of a component of the business resulted in a $1985000 loss.The effect of these events and transactions on 2020 net income net of tax would beAfter many years of success, Kaputnik Co. recorded net operating losses for the years year 13 through year 16, totaling $250 million, resulting in the recording of large deferred tax assets based on the assumption of a rapid return to profitability. However, attempts by management to revamp its outmoded business model have so far failed. A radical final attempt to save the company will be implemented in year 18. It will entail selling off the vast majority of Kaputnik’s asset groups while maintaining a small but promising segment. The projected outlook for the near term is a modest net profit of $5 million over the next three years, beyond which it is impossible to determine if Kaputnik Co. will even still be in existence. The enacted tax rate has been 35% for the last several years and is expected to be 21% in year 17 and future years. No addition to the deferred tax asset balance will be recorded for year 17, during which Kaputnik recorded a $70 million net operating loss, nor has…Esquire Comic Book Company had income before tax of $1,000,000 in 2016 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $350,000. The division generated beforetax income from operations from the beginning of the year through disposal of $500,000. Neither the loss on disposal nor the operating income is included in the $1,000,000 before-tax income the company generated from its other divisions. 2. The company incurred restructuring costs of $80,000 during the year. Required: Prepare a 2016 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 40%. Ignore EPS disclosures.
- In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. Item Debit Credit 1. Net sales $ 4,700,000 2. Gain on state's condemnation of company property 373,000 3. Cost of goods sold $ 2,399,000 4. Income tax expense 352,000 5. Depreciation expense 376,000 6. Gain on sale of wholesale business segment, net of tax 1,256,000 7. Loss from operating wholesale business segment, net of tax 720,000 8. Loss of assets from meteor strike 1,037,000 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.)Presented below is information related to Ivanhoe Company as of and for the year ended December 31, 2017. This was Ivanhoe Company’s first year of operations. (Ignore income tax effects.) ● Sales revenue $1,310,000 ● Cost of goods sold 640,000 ● Selling and administrative expenses 310,000 ● Loss on sale of plant assets 64,000 ● Unrealized gain on available-for-sale investments 13,000 ● Interest expense 5,000 ● Interest revenue 4,100 ● Loss on discontinued operations 3,000 ● Allocation to noncontrolling interest 8,500 ● Dividends declared and paid 27,700 Compute the following: (a) Income from continuing operations $enter a dollar amount (b) Net income $enter a dollar amount (c) Net income attributable to Ivanhoe Company’s controlling shareholders $enter a dollar amount (d) Comprehensive income $enter a dollar amount (e) Retained earnings balance at December 31,…On September 1, 2012, Ramos Inc. approved a plan to dispose of a segment of its business. Ramos expected that the sale would occur on March 31, 2013, at an estimated gain of $375,500. The segment had actual and estimated operating profits (losses as follows): Please prepare answers to the following questions. Assume a marginal tax rate of 35% Realized loss from 1/1/12 to 8/31/12 …….... $ 200,000 Realized loss from 9/1/12 to 12/31/12 ……...$ 135,000 Expected profit from 1/1/13 to 3/31/13. ….... $ 475,000 What should Ramos report as profit or loss from discontinued operations (net of tax effects) in its 2012 income statement? Calculate the amount of income that should be shown on the 2013 income statement as a result of the operating profit and the gain on disposal (net of tax). Please include details to support your response.