Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Assume that the company’s income tax rate is 40% for all items. Debit Credit a. Interest revenue $ 14,400 b. Depreciation expense—Equipment $ 34,400
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Assume that the company’s income tax rate is 40% for all items. Debit Credit a. Interest revenue $ 14,400 b. Depreciation expense—Equipment $ 34,400
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes
Section: Chapter Questions
Problem 15Q
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Question
Selected account balances from the adjusted
| Debit | Credit | ||
|---|---|---|---|
| a. | Interest revenue | $ 14,400 | |
| b. | $ 34,400 | ||
| c. | Loss on sale of equipment | 26,250 | |
| d. | Accounts payable | 44,400 | |
| e. | Other operating expenses | 106,800 | |
| f. | Accumulated depreciation—Equipment | 72,000 | |
| g. | Gain from settlement of lawsuit | 44,400 | |
| h. | Accumulated depreciation—Buildings | 175,300 | |
| i. | Loss from operating a discontinued segment (pretax) | 18,650 | |
| j. | Gain on insurance recovery of tornado damage | 29,520 | |
| k. | Net sales | 1,002,500 | |
| l. | Depreciation expense—Buildings | 52,400 | |
| m. | Correction of overstatement of prior year’s sales (pretax) | 16,400 | |
| n. | Gain on sale of discontinued segment’s assets (pretax) | 36,000 | |
| o. | Loss from settlement of lawsuit | 24,150 | |
| p. | Income tax expense | ? | |
| q. | Cost of goods sold | 486,500 |
3. What is the total amount of after-tax income (loss) associated with the discontinued segment?
Transcribed Image Text:After-tax income from discontinued segment
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