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kogti [31]
3 years ago
12

During the year, Apex Co. sold an unprofitable component of the company. The component had a net loss from operations during the

period of $150,000 and its assets sold at a loss of $100,000. Apex reported income from continuing operations before taxes of $128,387. All items are taxed at 30%. How would this item appear in the income statement?
Business
1 answer:
natita [175]3 years ago
6 0

Answer: In the Apex income statement,

Income from continuing operations before taxes $128,387

Taxation $36,483.9

Profit for the year from continuing operations $164,870.9

Loss from discontinued

operations ($175,000)

Loss for the year ($10,129.1)

Explanation: First, there was a tax expense on the profit from continuing operations to the tune of $38,516.1 (30% of $128,387) because the company made a gain. Subsequently, there was a deferred tax asset on the loss sustained on discontinued operations of $75,000 therefore resulting in tax asset of $36,483.9.

There is usually a need to report the profit from continuing operations separately from that of discontinued operations so that actual profit and cash flows from continuing operations can be easily recognizable from that of discontinued operations. In that way, the users of the financial statements would be able to distinguish between the two profit lines.

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Answer:

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2. ANSWER: $400,000

3. ANSWER: $28.45

Explanation:

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2. The planned market share in dollars is 10% * $4 million = $400,000

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3 years ago
What qualifications are the officials of lilliput expected to have in order to hold high office?
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<span>The officials are expected to have a very good sense of balance. To achieve the office in the first place, the officials are required to cross a tightrope suspended above the ground, reach the middle, and jump as high as they can without falling or otherwise injuring themselves.</span>
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Q 5.34: A wholesaler offers credit terms 1/10, n/30. A fabric store bought goods worth $6,500 from the wholesaler. Within the di
AnnyKZ [126]

Answer:

the wholesaler received $6,138 as payment.

Explanation:

The seller would receive the the amount owing to customer less the return credit and cash discount of 1 %.

The calculation of this amount is as follows :

Account Receivable                        $6,500

Less Return Credit                            ($300)

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Less Cash discount ($6,200 × 1%)      ($62)

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Answer:

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