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USPshnik [31]
3 years ago
14

On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor busin

ess for $17 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $16 million. The loss from operations of the segment during 2021 was $4.6 million. Pretax income from continuing operations for the year totaled $6.7 million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)
Business
1 answer:
VLD [36.1K]3 years ago
5 0

Answer:

$2,325,000

Explanation:

Preparation of the lower portion of the 2021 income statement

CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2021

Income from continuing operations before income $ 6,700,000

Less Taxes Income tax expense ($1,675,000)

($ 6,700,000*25%)

Income from continuing operations $5,025,000

($ 6,700,000-$1,675,000)

Discontinued operations:

Loss from operations of discontinued $3,600,000

Income tax benefit $900,000

(25%*$3.6 million)

Loss on discontinued operations $2,700,000

($3,600,000-$900,000)

Net income $2,325,000

($5,025,000-$2,700,000)

Therefore Income Statement For the Year Ended December 31, 2021 will be $2,325,000

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Ajax is reviewing its previous 100% acquisition of Baxter to determine if there is goodwill impairment. At December 31, 2020 Aja
Sedaia [141]

Answer:

Baxter

The amount of the Goodwill write-off required to be booked by Ajax at December 31, 2020 under the FASB rules effective in 2020 is:

= $130,000.

Explanation:

a) Data and Calculations:

Recorded Goodwill = $330,000

Book value of net assets = $400,000

Book value of all assets = $730,000 ($400,000 + $330,000)

Estimated fair value of company = $600,000

Goodwill impairment = $130,000 ($730,000 - $600,000)

b) The Goodwill impairment of $130,000 arose when the book value or the carrying amount exceeded the estimated fair value.

7 0
2 years ago
Blake Company purchased two identical inventory items. The item purchased first cost $17.00, and the item purchased second cost
BaLLatris [955]

Answer:

Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.

Explanation:

Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.

True as under weighted average:

(17 + 18) / 2 = 17.50

the ending inventory will be one unit valued at $17.50

while under FIFO the 17 dollar unit was sold and declare cost

while the second is keep under ending invenotry at $18.00

7 0
3 years ago
______ is a tool that reminds managers to look at several distinct categories in the macro environment.
nata0808 [166]

Pestel  is a tool that reminds managers to look at several distinct categories in the macro environment.

<h3>What is the macro environment?</h3>

This is the term that is used to refer to the environment that is made up of the major forces that are both external and also uncontrollable that is used to influence the decision making process of a firm.

The macro environment is made up of such factors such as demographics, economy, technology, political and a lot more of other factors. They are used to control the decision making process in the nation. It is also referred to as the environment at large

Read more on macro environment here: brainly.com/question/16080962

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5 0
1 year ago
At a price of $60 per bathing suit, what is the quantity demanded of bathing suits?
timofeeve [1]

Answer:

Explanation:

I think your question is missed of key information, allow me to attach the photo question below.

The quantity demanded is 30 units when the price is 60, we use the reconciliation method on the demand line.

3 0
3 years ago
During 2021, Falwell Inc. had 610,000 shares of common stock and 61,000 shares of 9% cumulative preferred stock outstanding. The
Korvikt [17]

Explanation:

I dont k ow and I dont care

6 0
2 years ago
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