1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zhenek [66]
4 years ago
10

A loss from the disposal of a significant component of a business should be reported separately in the income statement: after i

ncome from continuing operations. before income from continuing operations. after other comprehensive income. before income before income taxes.
Business
1 answer:
wlad13 [49]4 years ago
8 0

<u>Answer:</u> Option 1 After income from continuing operations.

<u>Explanation:</u>

A disposal account shows the profit or loss from the sale of any asset. When the sale price is higher than the book value of the component then it is a gain. When the sale price is less than book value then it is a loss.

Loss from the sale of component will reduce the income of the business. When there is a loss it is debited in the income statement. This appears below the operations income and it is deducted from the revenue to show the actual value of the revenue.

You might be interested in
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF):Spot...........................
Gnoma [55]

Answer:

The Wall Street Journal Reports

a. The Swiss franc was selling at a premium in the forward market.

b. The 30-day forward premium was: $0.0049.

c. The 90-day forward premium was: $0.0099.

d. Dollars to receive from a 90-day forward contract is $95,310.

Explanation:

a) Data and Calculations:

Spot and forward rates for the Swiss franc ($/SF):

Spot............................................ $0.9432

30-day forward.......................... $0.9481

90-day forward.......................... $0.9531

180-day forward........................ $0.9594

Premium:

30-day forward.......................... $0.9481

Spot............................................   $0.9432

Premium =                             $0.0049

90-day forward.......................... $0.9531

Spot............................................   $0.9432

Premium =                             $0.0099

180-day forward........................ $0.9594

Spot............................................    $0.9432

Premium =                               $0.0162

Dollars to receive from a 90-day forward contract is $95,310 ($0.9531 * SF 100,000)

6 0
3 years ago
Which of the following statements concerning capital structure theory is NOT CORRECT?
Pani-rosa [81]

Answer: D. Under MM with corporate taxes, rs increases with leverage, and this increase exactly offsets the tax benefits of debt financing.

3 0
3 years ago
The average monthly rent for one-bedroom apartments in Chattanooga has been $700. Because of the downturn in the real estate mar
Olenka [21]

Answer:

y>700 and 700>y>0

Explanation:

Though there is not so much information, but the fact that $700 is an average. We can work with two hypothesis at first, he first Hypothesis before the downturn the rent are over $700. And the second one, the bedroom rent are under $700.

1) Graphically, the shaded area before the downturn, represents the set of values for Rents greater than $700. So, rent (y) > 700

2) Graphically, the shaded area after the downturn, represents the set of values for Rents lesser than $700. So, rent 700 <y<0

5 0
4 years ago
Holiday Company issued its 9%, 25-year mortgage bonds in the principal amount of $3,000,000 on January 2, 2006, at a discount of
elixir [45]

Answer:

A. December 18, 2020

Dr Cash 4,080,000

Cr 11% Bond payable (Face value) 4,000,000

Cr Premium on issue of Bond payable 80,000

January 2, 2021

Dr 9% Bonds Payable ( Face value) 3,000,000

Dr Loss on redemption of Bond 180,000

Cr Discount on Bond payable 60,000

Cr Cash 3,120,000

B. The LOSS is reported as an ORDINARY INCOME

Explanation:

A. Preparation of Journal entries

December 18, 2020

Dr Cash 4,080,000

($4,000,000/100)*102

Cr 11% Bond payable (Face value) 4,000,000

Cr Premium on issue of Bond payable 80,000

(4,080,000-4,000,000)

January 2, 2021

Dr 9% Bonds Payable ( Face value) 3,000,000

Dr Loss on redemption of Bond 180,000

[3,00,0000-(3,120,000+60,000)]

Cr Discount on Bond payable 60,000

($150,000/25)*10

Cr Cash 3,120,000

(3,000,000*104%)

B. Indication of the income statement treatment of the gain or loss from redemption.

The LOSS is reported as an ORDINARY INCOME

8 0
3 years ago
VelSad is contemplating the acquisition of Po, Inc. The values of the two companies as separate entities are $32 million and $16
svetoff [14.1K]

Answer:

7.58m

Explanation:

The VelSad is considering to acquire Po, Inc. by offer of 20 million cash or either 44% holding. The cost of acquisition refers to all cost incurred by a company to acquire another company. The benefit VelSad can get after acquiring Po, Inc is that it can save marketing and administrative cost by $560,000 every year. The cost of stock offer is 7.58 million. This is calculated by taking 44% of VelSad value and then discounting it at cost of capital which is 10%.

7 0
3 years ago
Other questions:
  • A direct marketing channel would be utilized by which of these companies? Convenience, an online store that offers its products
    11·1 answer
  • In his presentation to his co-workers, Kyle encouraged his colleagues to reach their highest potential and take pride in their w
    8·1 answer
  • Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against
    6·1 answer
  • How gross profit or loss is computed​
    15·1 answer
  • What kind of lights can be used to highlight merchandise while leaving the rest of the display space dimly lit or dark?
    10·1 answer
  • You just deposited $6,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add anothe
    8·1 answer
  • I need to know how to make friends
    13·2 answers
  • In terms of the global marketplace there are three primary types of companies: __________, multinational firms, and transnationa
    6·1 answer
  • Job 243 $5,750 Job 244 $4,980 Job 245 $3,675 Job 246 $4,250 Job 247 $5,100 Job 248 $3,800 Jobs 243 and 244 were in finished good
    10·1 answer
  • Which of the following is NOT a correct statement about diversification? A) As Dr. Melton stated in class, most diversification
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!