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
ANEK [815]
3 years ago
9

The company decided to discontinue an operating division during 2018 and sold the assets on December 15, 2018. Loss from operati

ons of the division were $500,000 for the year through 12/15/2018. The assets were sold for $800,000 and had a net book value of $1,000,000. The effective income tax rate if 40%. Income from continuing operations after taxes was $2,000,000. Calculate net income and prepare the income statement starting with income from continuing operations.
Business
1 answer:
BaLLatris [955]3 years ago
5 0

Answer: Please refer to the explanation section

Explanation:

Loss from operations = $500 000

Loss (sale of assets) = $1000 000 - $800 000 = $200 000

Income from continuing operations after tax = $2000 000, Therefore income from continuing operations before tax is equal to $200 000 x 100/60 = 3 333 333.333

Net Income before tax = 3 333 333.333  -  500 000 - 200 000

Net Income before tax == 2633 333.333

Net Income After Tax = 2633 333.333 x 60/100 = $1580 000

Income Statement

Income from continuing operations   3 333 333.333

Loss from operations                         - 500 000

Loss from sale of assets                    <u>- 200 000</u>

Net Income before Tax                       2633 333.333

Taxation                                              <u>-1053 333.333</u>

Net Income                                         1580 000

You might be interested in
Why have nonalcoholic drinks increased in popularity, and what difficulties do bar managers face when serving alcohol
Verizon [17]

Answer:

People consumes less of alcohol and more of non alcoholic drinks.

Explanation:

Now-a days people consumes less of alcoholic drinks as non alcoholic beverages or drinks are becoming non popular day by day. People have become more health conscience and wants to remain fit. Now wonder alcohol causes a lot harm to the human health. People now are aware of the side effects of consuming alcohol.

In the recent years the life style of the people have change a lot and they they have become health conscious than before. The consumption of other non alcoholic drinks have become familiar and famous including green tea, fruit juices, goji juice and many more.

The bar managers also face difficulty in serving alcohol to people as people refuse to drink them. They are more health conscience and is aware of the fatal incidents about drunk driving. They prefer other non beverages in the bar. As a result the sale of alcohol has decreased a lot. There are also various awareness programs running against consumption of alcohol.Thus people do not drink alcohol any more and so it is difficult for the bar managers to offer alcohol to their customers.

4 0
3 years ago
Some states don't allow teacher aides to A. take attendance. B. monitor the halls. C. supervise a bus. D. aid in instructing a c
Vinvika [58]
C. supervise a bus, final answer
5 0
4 years ago
Darrell inherited a large amount of money from his uncle. darrell wishes to start his own business, and his lawyers encourage hi
kompoz [17]

Corporations provide two major benefits over a sole-proprietorship.

1. Corporations are taxed at a different rate than individual incomes. Sole-props are taxed altogether, which can create more tax burden for the owner.

2. Corporations assume all the risk and protect its owners' assets from damages. Sole-props assume all responsibility for the business and all their assets are subject to damages.

6 0
3 years ago
Describe all business activities from the time a customer arrives to the time that customer departs your favorite fast-food rest
3241004551 [841]

Answer: The answer is provided below

Explanation:

1. The following are the business activities that takes place from the moment a customer arrives to the moment the customer leaves my favorite fast-food restaurant.

The first thing is welcoming the customer to the restaurant, after the customer sits down, a waiter for to the customer and gives the menu to the customer for him or her to choose the kind of meal he or she wants. After the customer has chosen the meal, the order is received and then filled. The food is then brought to the customer with an accompanying bill for the customer to make payment. Lastly, when the customer has finished eating, the waiter and security at the gate thanks him or her on their way out.

2. The costs are:

i. The salary of the staffs at the restaurant. This include the waiter, cook, security, manager, cleaners etc.

ii. Utility bills such as electricity and water.

iii. Rent of the building.

iv. Cost of the ingredients for the meals.

3. Fixed cost is a cost which doesn't vary with the production output while variable costs are the costs that varies with output. For the (ii) above, the fixed costs are: salary of staffs, rent, utility bills because these costs doesn't usually change while the variable cost is the cost of the ingredients for the meals.

7 0
4 years ago
The mass culture theory results from viewing cinema as a(n)? economic institution. social institution. technological institution
Vadim26 [7]

The mass culture theory result from viewing cinema as a social institution.

Films that are widely disseminated and accessible can readily reach popular culture or mass culture.

Institutions in the theater or, more broadly, the arts have traditionally been on the front lines of managing societal crises or revolutions. Theatres serve as first responders, metaphorically, by providing locations and settings for enlarged depictions of the risks and challenges that society faces.

MASS CULTURE: Typically, the term "mass culture" refers to a culture that results from the centralized production methods used by the mass media.

The mass culture theory result from viewing cinema as a social institution.

To learn more about mass culture as a social institution, visit the following link:

brainly.com/question/16273365

#SPJ4

7 0
2 years ago
Other questions:
  • Alt Corp. issues 5,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, increases are ma
    12·1 answer
  • The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
    15·1 answer
  • The ultimate economic burden of a tax is best captured by: A. the marginal tax rate. B. the effective tax rate. C. the average t
    7·1 answer
  • Which of the following countries has the highest gross domestic product?a. Belwick, whose market value of final goods is $100 bi
    7·1 answer
  • Sales Tax Cobb Baseball Bats sold 45 bats for $50 each, plus an additional state sales tax of 6%. The customer paid cash.Require
    5·1 answer
  • Pam didn't go see the movie IT because her friends all said she wouldn't be able to handle it. When she found out how good it wa
    14·1 answer
  • A company’s fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product’s sales price is $4.50. W
    14·1 answer
  • : When you go looking for a job after graduation, what sources do you expect to use? Why?
    14·1 answer
  • Which models of decision making describe how managers actually make decisions?
    5·1 answer
  • Which of the following are the two main types of contracts?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!