Required information [The following information applies to the questions dlisplayed below.) Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Debit Credit a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of 1lawsuit h. Accumulated depreciation-Buildings 1. Loss from operating a discontinued segnent (pretax) J. Gain on insurance recovery of tornado danage k. Net sales 1. Depreciation expense-Buildings n. Correction of overstatenent of prior year's sales (pretax) n. Gain on sale of discontinued segnent's assets (pretax) o. Loss from settlement of 1lawsuit p. Income tax expense q. Cost of goods sold $ 14, 300 $ 34, 300 26,15e 44, 300 106,700 71,900 44, 300 175, 100 18,55e 29,420 1,001,500 52, 300 16,300 35,500 24,05e 485,5ee quired: Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items eled pretax. 30% Tax Effect Pretax After-Tax 5s from operating a discontinued segment 18,550 O 5,505 O 12,085 O 18,300 O 4,800 O 11,410 O orrection of overstatement of prior year's sales ain on sale of discontinued segment's assets 34,300 O 10,200 O 24,010 0
Required information [The following information applies to the questions dlisplayed below.) Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Debit Credit a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of 1lawsuit h. Accumulated depreciation-Buildings 1. Loss from operating a discontinued segnent (pretax) J. Gain on insurance recovery of tornado danage k. Net sales 1. Depreciation expense-Buildings n. Correction of overstatenent of prior year's sales (pretax) n. Gain on sale of discontinued segnent's assets (pretax) o. Loss from settlement of 1lawsuit p. Income tax expense q. Cost of goods sold $ 14, 300 $ 34, 300 26,15e 44, 300 106,700 71,900 44, 300 175, 100 18,55e 29,420 1,001,500 52, 300 16,300 35,500 24,05e 485,5ee quired: Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items eled pretax. 30% Tax Effect Pretax After-Tax 5s from operating a discontinued segment 18,550 O 5,505 O 12,085 O 18,300 O 4,800 O 11,410 O orrection of overstatement of prior year's sales ain on sale of discontinued segment's assets 34,300 O 10,200 O 24,010 0
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter3: Basic Accounting Systems: Accrual Basis
Section: Chapter Questions
Problem 3.6.1P: Adjustment process and financial statements Adjustment data for Ms. Ellen’s Laundry Inc. for the...
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![Required information
[The following information apples to the questions displayed below.]
Selected account balances from the adjusted trial balance for Olinda Corporation as of Its calendar year-end December 31
follow.
Debit
Credit
a. Interest revenue
b. Depreciation expense-Equipment
c. Loss on sale of equipment
d. Accounts payable
e. Other operating expenses
f. Accumulated depreciation-Equipment
g. Gain from settlement of 1lawsuit
h. Accumulated depreciation-Buildings
i. Loss from operating a discontinued segnent (pretax)
j. Gain on insurance recovery of tornado danage
k. Net sales
1. Depreciation expense-Buildings
n. Correction of overstatenent of prior year's sales (pretax)
n. Gain on sale of discontinued segnent's assets (pretax)
o. Loss from settlement of lawsuit
p. Income tax expense
q. Cost of goods sold
14,300
$ 34, 300
26,15e
44, 300
106, 70e
71,900
44, 300
175,100
18,55e
29,420
1,001,500
52, 300
16, 300
35,500
24,05e
485,5ee
Required:
1. Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items
labeled pretax.
30% Tax
Effect
After-Tax
Pretax
Loss from operating a discontinued segment
18,550 O
5,565 O
12,985 O
Correction of overstatement of prior year's sales
18,300 O
34,300
4,890 O
11,410 O
Gain on sale of discontinued segment's assets
10,200 8
24,010 0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2F1816c26b-1f4c-4f72-a42d-b24374f266a7%2Fl2r47un_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information apples to the questions displayed below.]
Selected account balances from the adjusted trial balance for Olinda Corporation as of Its calendar year-end December 31
follow.
Debit
Credit
a. Interest revenue
b. Depreciation expense-Equipment
c. Loss on sale of equipment
d. Accounts payable
e. Other operating expenses
f. Accumulated depreciation-Equipment
g. Gain from settlement of 1lawsuit
h. Accumulated depreciation-Buildings
i. Loss from operating a discontinued segnent (pretax)
j. Gain on insurance recovery of tornado danage
k. Net sales
1. Depreciation expense-Buildings
n. Correction of overstatenent of prior year's sales (pretax)
n. Gain on sale of discontinued segnent's assets (pretax)
o. Loss from settlement of lawsuit
p. Income tax expense
q. Cost of goods sold
14,300
$ 34, 300
26,15e
44, 300
106, 70e
71,900
44, 300
175,100
18,55e
29,420
1,001,500
52, 300
16, 300
35,500
24,05e
485,5ee
Required:
1. Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items
labeled pretax.
30% Tax
Effect
After-Tax
Pretax
Loss from operating a discontinued segment
18,550 O
5,565 O
12,985 O
Correction of overstatement of prior year's sales
18,300 O
34,300
4,890 O
11,410 O
Gain on sale of discontinued segment's assets
10,200 8
24,010 0
![Required information
[The following information apples to the questions displayed below.]
Selected account balances from the adjusted trial balance for Olinda Corporation as of Its calendar year-end December 31
follow.
Debit
Credit
$ 14,300
a. Interest revenue
b. Depreciation expense-Equipment
c. Loss on sale of equipment
d. Accounts payable
e. Other operating expenses
f. Accumulated depreciation-Equipment
g. Gain from settlement of lawsuit
h. Accumulated depreciation-Buildings
1. Loss from operating a discontinued segment (pretax)
j. Gain on insurance recovery of tornado danage
k. Net sales
1. Depreciation expense-Buildings
n. Correction of overstatement of prior year's sales (pretax)
n. Gain on sale of discontinued segnent's assets (pretax)
o. Loss from settlement of 1lawsuit
p. Income tax expense
q. Cost of goods sold
$ 34,300
26,150
44, 300
106,700
71,980
44, 300
175,100
18,55e
29,420
1,001,500
52,300
16,300
35,5e0
24,85e
485,500
Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items
labeled pretax.
2a. What is the amount of Income from continulng operatlons before Income taxes?
2c. What is the amount of Income from continulng operations?
Complete this question by entering your answers in the tabs below.
Req 2A
Req 2B
Req 20
What is the amount of income from continuing operations before income taxes?
Income from continuing operations before taxes
IS
284,880 8
< Req 2A
Req 2B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2F1816c26b-1f4c-4f72-a42d-b24374f266a7%2F665ykoo_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information apples to the questions displayed below.]
Selected account balances from the adjusted trial balance for Olinda Corporation as of Its calendar year-end December 31
follow.
Debit
Credit
$ 14,300
a. Interest revenue
b. Depreciation expense-Equipment
c. Loss on sale of equipment
d. Accounts payable
e. Other operating expenses
f. Accumulated depreciation-Equipment
g. Gain from settlement of lawsuit
h. Accumulated depreciation-Buildings
1. Loss from operating a discontinued segment (pretax)
j. Gain on insurance recovery of tornado danage
k. Net sales
1. Depreciation expense-Buildings
n. Correction of overstatement of prior year's sales (pretax)
n. Gain on sale of discontinued segnent's assets (pretax)
o. Loss from settlement of 1lawsuit
p. Income tax expense
q. Cost of goods sold
$ 34,300
26,150
44, 300
106,700
71,980
44, 300
175,100
18,55e
29,420
1,001,500
52,300
16,300
35,5e0
24,85e
485,500
Assume that the company's Income tax rate is 30% for all Items. Compute the tax effects and after-tax amounts of the three Items
labeled pretax.
2a. What is the amount of Income from continulng operatlons before Income taxes?
2c. What is the amount of Income from continulng operations?
Complete this question by entering your answers in the tabs below.
Req 2A
Req 2B
Req 20
What is the amount of income from continuing operations before income taxes?
Income from continuing operations before taxes
IS
284,880 8
< Req 2A
Req 2B >
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