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jeyben [28]
3 years ago
10

On May 31, 20X1, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the ent

ity. By the end of the year, the assets have not been sold. The book value of those assets equals $1,100,000, and the company estimates their fair value to be $850,000. The component generated operating income for the year of $450,000. In its income statement for the year ended December 31, 20X1, for what amount would the company report income from operations of a discontinued component (ignoring taxes).
Business
1 answer:
nadya68 [22]3 years ago
6 0

Answer:

$450,000

Explanation:

Note: In the given case there is no actual sale of the cosmetic line, it is still continued.

Therefore, there will be no realized gain or loss to be recorded in the books as the company did not even enter into any agreement to such sale.

But as the company is going to discontinue the note shall form part, as will affect the going concern concept for the component.

Therefore, entire amount earned from such operation of cosmetic line shall be reported as earnings from Discontinued operations.

Amount earned from operations of cosmetic line = $450,000, now, this shall be income from operations of discontinued component.

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Flura [38]

Answer:

E) Oil imports declined as countries exporting oil reduced supply.

Explanation:

Oil is extremely important for industrialized nations and since Euphrasia is a mixed open economy, we can assume that it is an industrialized nation. Oil has become the most important energy source for more than 60 years and is the raw material for manufacturing plastic.

During the 1970s and early 1980s the American economy was shattered by an increase in the price of foreign oil and a decrease in its domestic production levels. The importance of oil is also why so many modern wars have been fought over oil production and reserves.

4 0
3 years ago
During the current year, Esty Company replaced the roof on its manufacturing facility with a better roof that also extended the
vodka [1.7K]

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A

Explanation:

5 0
2 years ago
Apex Systems Co. offers its services to residents in the Seattle area. Selected accounts from the ledger of Apex Systems Co. for
AfilCa [17]

Answer:

Explanation:

The preparation of the statement of stockholders' equity at the end of the year is presented below:

                                          Apex Systems Co.

                             Statement of stockholders' equity  

                            For the fiscal year ended December 31, 2016

Particulars                  Common Stock          

Beginning

Balance                      $1,340,000

Add: Net income       $356,000    

Less:

Bart Nesbit, Drawing  -$91,200

Ending balance          $1,604,800                

                       

6 0
3 years ago
Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $59 to buy from farmers and $2
snow_lady [41]

Answer:

Financial disadvantage from further processing = $(9)

Explanation:

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>

<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further .  </em>

                                                                                                  $

Sales revenue after crushing                                                55                          

Sales revenue at the split-off point                                        <u>81</u>

Additional sales revenue                                                       26

Further processing cost                                                        <u> (35)</u>

Net income after further processing                                     <u> (9) </u>

Financial disadvantage from further processing = $(9)

<em>Kindly note that the allocated joint costs( cost of sugar and crushing) are irrelevant. This implies that whether or not the intermediate products are processed further the joint costs are irrelevant to the decision to process the beet juice further</em>.

4 0
3 years ago
In a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to
olganol [36]
A. True, I guess......
7 0
3 years ago
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