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.
Answer:
Gold Corp.
The stand-alone sales price is $135
Explanation:
a) Data and Calculations:
Selling price of desks = $500 per unit
Selling price of chairs = $150 per unit
Combined price of desks and chairs = $650
50% discount coupon on chairs = $75 (50% * $150)
Normal discount price of chairs = $135 ($150 * 90%)
Combined price of desks and discounted chair = $575 ($500 + $75)
Allocation of transaction price:
Desk = $575 * $500/$635 = $452.76
Chair = $575 * $135/$635 = $122.24
Total = $575
Answer: exhibits a low interest rate and is expected to depreciate.
Explanation:
Bonds are the debt securities which are issued by the governments or corporations, and usually have a lower risk and reward than stocks.
A profit oriented firm desires to denominate bonds in a currency that exhibits a low interest rate and is expected to depreciate.
Answer:
The answer is $1,404,000
Explanation:
Total amount realized from the issuance: 40,000 shares x $24
= $960,000
Treasury stock repurchased:
6,000 shares x $26
=$156,000
Net income = $600,000
The total amount of stockholders' equity at December 31, 2018 is:
Net income + amount realized from issuance - amount of treasury stock
$600,000 + $960,000 - $156,000
$1,404,000
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