Southeast Airlines had pretax earnings of $65 million. Included in this amount is income from discontinued operations of $10 million. The company’s tax rate is 25%. What is the amount of income tax expense that Southeast would report in its income statement for continuing operations? How should the gain on disposal of a discontinued operation be reported?

Southeast Airlines had pretax earnings of $65 million. Included in this amount is income from discontinued operations of $10 million. The company’s tax rate is 25%. What is the amount of income tax expense that Southeast would report in its income statement for continuing operations? How should the gain on disposal of a discontinued operation be reported?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 11DQ

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Southeast Airlines had pretax earnings of $65 million, including a gain on disposal of a discontinued operation of $10 million. The company’s tax rate is 40%. What is the amount of income tax expense that Southeast should report in its income statement? How should the gain on disposal of a discontinued operation be reported?
Woodward Corporation reported pretax book income of $1,335,000. Included in the computation were favorable temporary differences of $355,000, unfavorable temporary differences of $98,250, and favorable permanent differences of $158,000. Compute the company’s current income tax expense or benefit. In picture- what is the tax rate and current income tax expense?
Your answer is partially correct. Try again. For its fiscal year ending October 31, 2022, Grouper Corp. reports the following partial data shown below. Income before income taxes $464,400 Income tax expense (20% × $361,200) 72,240 Income from continuing operations 392,160 Loss on discontinued operations 103,200 Net income $288,960 The loss on discontinued operations was comprised of a $43,000 loss from operations and a $60,200 loss from disposal. The income tax rate is 20% on all items.Prepare a correct statement of comprehensive income, beginning with income before income taxes. GROUPER CORP.Partial Statement of Comprehensive Incomechoose an accounting period select a comprehensive income item $enter a dollar amount select a comprehensive income item enter a dollar amount select a comprehensive income item enter a subtotal of the two previous amounts select a comprehensive…
Toodles Inc. had sales of $1,840,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $1,180,000, $185,000 and $365,000 respectively. In addition, the company had an interest expense of $280,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carry forward provisions.) What was Toodles’s OCF?
During the current year, Newtech Corporation sold a segment of its business at a loss of $225,000. Until it was sold, the segment had a current period operating loss of $200,000. The company had $750,000 from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $750,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40% income tax rate. Disregard earnings per share disclosures. Newtech Corporation Partial Income Statement Income from continuing operations Discontinued operations Current Year Loss from operations of discontinued segment (net of tax) $ 200,000 Loss on disposal of discontinued segment (net of tax) Net income $ 750,000 0 0 $ 0
Your answer is partially correct. Try again. For its fiscal year ending October 31, 2022, Grouper Corp. reports the following partial data shown below. Income before income taxes $464,400 Income tax expense (20% × $361,200) 72,240 Income from continuing operations 392,160 Loss on discontinued operations 103,200 Net income $288,960 The loss on discontinued operations was comprised of a $43,000 loss from operations and a $60,200 loss from disposal. The income tax rate is 20% on all items.Prepare a correct statement of comprehensive income, beginning with income before income taxes.
The following information relates to Sustagoon Ltd. Profit before tax for the year ended 30 June 2020 was $504,400. The following items were used in determining that profit: Sales revenue 1,450,800 Cost of sales 608,400 Selling expenses 156,000 Administrative expenses 93,600 Other expenses 57,200 Interest expense 31,200 504,400 Other events which occurred during the year: Gain on revaluation of land 26,000 Assume the company’s taxation rate is 30c in the dollar. Required: Prepare a statement of profit or loss and other comprehensive income for the year ended 30 June 2020, in accordance with the requirements of AASB 101. Based on the information received determine whether to disclose by function or nature. Ignore comparatives as the information is not provided.
During the year, Belyk Paving Co. had sales of $2,600,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,535,000, $465,000, and $520,000, respectively. In addition, the company had an interest expense of $245,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) (Enter your answer as directed, but do not round intermediate calculations.) Required: (a) What is Belyk's net income? (Negative amount should be indicated by a minus sign.) Net income (b) What is Belyk's operating cash flow? Operating cash flow A
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For the base case in this section, as a percentage of sales, COGS = 69 percent, SGA = 15 percent, R&D = 2.5 percent. Depreciation, Interest expense are fixed as stated. Tax Rate is 21 percent.
During the current year, Dale Corporation sold a segment of its business at a gain of $315,000.Until it was sold, the segment had a current period operating loss of $112,500. The company had$1,275,000 from continuing operations for the current year.Prepare the lower part of the income statement, beginning with the $1,275,000 income fromcontinuing operations. Follow tax allocation procedures, assuming that all changes in incomeare subject to a 20% income tax rate. Disregard earnings per share disclosures. (Round all calculations to nearest dollar amount.)
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