Pizza Hut is an American multinational restaurant chain and international franchise founded in 1958. For the year ending December 31, 2024, Pizza Hut had income from continuing operations before taxes of $1,380,000 before considering the following transactions and events. Please note that all of the items described below are before taxes and the amounts should be considered material. 1. In Nov 2024, Pizza Hut sold its Allnatural Alternative restaurant chain that qualified as a component of an entity. Pizza Hut had adopted a plan to sell the Allnatural Alternative chain in May 2024. The income from operations of the chain from January 1, 2024, through November was $178,000 and the loss on sale of the chain's assets was $336,000. 2. In 2024, Pizza Hut sold one of its six factories, where pizza dought is made, for $1,560,000. At the time of the sale, the factory had a book value of $1,280,000. The factory was not considered a component of the entity. 3. In 2022, Pizza Hut's accounting department omitted the annual adjustment for patent amortization expense of $138,000. The error was not discovered until December 2024. Required: Prepare Olivo's income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2024. Assume an income tax rate of 25%. Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. OLIVO CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes + Income from continuing operations Discontinued operations: Loss on discontinued operations Net income
Pizza Hut is an American multinational restaurant chain and international franchise founded in 1958. For the year ending December 31, 2024, Pizza Hut had income from continuing operations before taxes of $1,380,000 before considering the following transactions and events. Please note that all of the items described below are before taxes and the amounts should be considered material. 1. In Nov 2024, Pizza Hut sold its Allnatural Alternative restaurant chain that qualified as a component of an entity. Pizza Hut had adopted a plan to sell the Allnatural Alternative chain in May 2024. The income from operations of the chain from January 1, 2024, through November was $178,000 and the loss on sale of the chain's assets was $336,000. 2. In 2024, Pizza Hut sold one of its six factories, where pizza dought is made, for $1,560,000. At the time of the sale, the factory had a book value of $1,280,000. The factory was not considered a component of the entity. 3. In 2022, Pizza Hut's accounting department omitted the annual adjustment for patent amortization expense of $138,000. The error was not discovered until December 2024. Required: Prepare Olivo's income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2024. Assume an income tax rate of 25%. Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. OLIVO CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes + Income from continuing operations Discontinued operations: Loss on discontinued operations Net income
Chapter1: Financial Statements And Business Decisions
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Pizza Hut is an American multinational restaurant chain and international franchise founded in 1958. For the year ending December 31,
2024, Pizza Hut had income from continuing operations before taxes of $1,380,000 before considering the following transactions and
events. Please note that all of the items described below are before taxes and the amounts should be considered material.
1. In Nov 2024, Pizza Hut sold its Allnatural Alternative restaurant chain that qualified as a component of an entity. Pizza Hut had
adopted a plan to sell the Allnatural Alternative chain in May 2024. The income from operations of the chain from January 1,
2024, through November was $178,000 and the loss on sale of the chain's assets was $336,000.
2. In 2024, Pizza Hut sold one of its six factories, where pizza dought is made, for $1,560,000. At the time of the sale, the factory
had a book value of $1,280,000. The factory was not considered a component of the entity.
3. In 2022, Pizza Hut's accounting department omitted the annual adjustment for patent amortization expense of $138,000. The
error was not discovered until December 2024.
OLIVO CORPORATION
Partial Income Statement
For the Year Ended December 31, 2024
Saved
Required:
Prepare Olivo's income statement, beginning with income from continuing operations before taxes, for the year ended December 31,
2024. Assume an income tax rate of 25%. Ignore EPS disclosures.
Note: Amounts to be deducted should be indicated with a minus sign.
Income from continuing operations before income taxes
+
Income from continuing operations
Discontinued operations:
Loss on discontinued operations
Net income
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