On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its semiconductor business for sale at year- end. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $7 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 $8 million. • The loss from operations of the segment during 2024 was $3.6 million. • Pretax income from other continuing operations for the year totaled $5.8 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.

On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its semiconductor business for sale at year- end. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $7 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 $8 million. • The loss from operations of the segment during 2024 was $3.6 million. • Pretax income from other continuing operations for the year totaled $5.8 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.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 38P

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