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DochEvi [55]
3 years ago
9

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

ity. The assets of the component were sold on October 13, 20 X 1, for $1,200,000. The book value of those assets equal $1,000,000 at the time of the sale. The component generated an operating loss of $300,000 from January 1, 20X1, through disposal. The company’s tax rate is 25%. For what amount would the company report income from discontinued operations?
Business
1 answer:
lianna [129]3 years ago
8 0

Answer:

loss from discontinued operation 450,000

Explanation:

when selling assets above the book value we have a gain:

1,200,000 - 1,000,000 = 200,000

For the gain on assets above book value we must pay taxes.

200,000 x (1-0.25) = 150,000

the income from discontinued operation plus this gain generated a component of 300,000 loss

150,000 gain on sale + income from discontinued = -300,000

discontinued result: -300,000 + -150,000 = -450,000

You might be interested in
Sanchez Foods Inc. is a large food manufacturing corporation that earns more profits than its competitors. The company uses only
frez [133]

Answer:

green marketing

Explanation:

From the question we are informed about the Sanchez Foods Inc. which is a large food manufacturing corporation that earns more profits than its competitors. The company uses only organically grown grains and fruits. It also promotes organic farming and helps nonprofit agencies that focus on food and nutrition causes. The company recently decided to use a third-party recycling logo. In this scenario, Sanchez Foods is most likely to have adopted the practice of green marketing.

Green marketing can be regarded as practice of developing as well as advertising products which is been

based on their real as well as their perceived environmental sustainability.

In a case, whereby green marketing activities of a Company are not substantiated from significant investments and doesn't substantiated by operational changes, the company

may be criticized as been using false or misleading advertising.

3 0
2 years ago
Corn chips and potato chips are substitutes. Good weather that sharply increases the corn harvest would a. increase consumer sur
yaroslaw [1]

Answer: Option(a) is correct.

Explanation:

Corn chips and potato chips, both are substitute goods and thus, affect each others demand by a small changes in various factors.

In this question, a good weather increases the harvesting of corn which increases the supply of corn chips.

This shifts the supply curve rightwards as a result price falls and quantity increases. Hence, this lower price, increases the consumer surplus in the market of corn chips.

This change in the supply of corn chips will affect the demand for potato chips in the potato chips market. So, the demand curve for potato chips shifts leftwards. This shift in the demand curve, reduces the price level and quantity level. Hence, this lowers the producer surplus in the market for potato chips.

6 0
3 years ago
Marco Nelson opened a frame shop and completed these transactions: Marco started the shop by investing $40,700 cash and equipmen
maxonik [38]

Answer:

$44,000

Explanation:

Given that,

Marco started the shop by investing = $40,700 cash  

Equipment valued = $18,700 in exchange for common stock.

Purchased office supplies on credit = $140

Paid cash for the receptionist's salary = $1,900

Balance of the cash account after these transactions were posted:

= Cash Investing in Shop - Paid cash for receptionist salary + Receive cash from sale of frame

= $40,700 - $1,900 + $5,200

= $44,000

3 0
3 years ago
ark each of the items in the following list with letters to indicate whether it would be listed as an Asset, Liability or Equity
elixir [45]

Answer: These could be categorized as follows :-

Explanation:

a. Accounts receivable = Asset in balance sheet

b. Sales  = Revenue in income statement

c. Equipment = Asset in balance sheet

d. Supplies expense =  Expense in income statement

e. Cash = Asset in balance sheet

f. Accounts payable = Liability in balance sheet

g. Retained Earnings =  Equity in balance sheet

h.  Revenue = Revenue in income statement

i. Contributed Capital =  Equity in balance sheet

j. .Cost of Goods Sold = Expense in income statement

k. Notes Payable =  Liability in balance sheet

l. Selling and Administrative Expenses = Expense in income statement

3 0
2 years ago
Congratulations! You have been appointed an economic policy adviser to the United States. You are told that the economy is signi
Nostrana [21]

Answer:

Price level may increase or decrease and output decreases.

Explanation:

The price level is determinated bu the money supply and demand. A single price, in this case oil, cannot determinate prices or we end up in a loop.

So this is insufficient information to determinate the price level.

While the income decrease at a worldwide level will make the output of the economy even lower.

4 0
3 years ago
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