RST Company reported the following 2021 information: Sales $600,000 CGS 320,000 Unearned revenue 18,000 Dividends declared 25,000 Salary expense 75,000 Rent expense 35,000 Depreciation expense 15,000 Unrealized gain, AFS 10,000 Gain from sale of trading securities $12,000 Loss from hurricane damage $20,000 Loss from discontinued operations $40,000 Income tax rate 20% How much will RST report as 2021 income from continuing operations (after tax)? a) $117,600 b) $112,000 c) $125,600 d) $108,000 How much will RST report as 2021 net income? a) $77,600 b) $107,000 c) $115,000 d) $85,600 How much will RST report as 2021 other comprehensive income? a) $10,000 b) $8,000 c) $93,600 d) $95,600

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...
icon
Related questions
Question
100%

RST Company reported the following 2021 information: Sales $600,000 CGS 320,000 Unearned revenue 18,000 Dividends declared 25,000 Salary expense 75,000 Rent expense 35,000 Depreciation expense 15,000 Unrealized gain, AFS 10,000 Gain from sale of trading securities $12,000 Loss from hurricane damage $20,000 Loss from discontinued operations $40,000 Income tax rate 20%

How much will RST report as 2021 income from continuing operations (after tax)?

a) $117,600 b) $112,000 c) $125,600 d) $108,000

How much will RST report as 2021 net income?

a) $77,600 b) $107,000 c) $115,000 d) $85,600

How much will RST report as 2021 other comprehensive income?

a) $10,000

b) $8,000

c) $93,600

d) $95,600

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Segment Reporting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Income Tax Fundamentals 2020
Income Tax Fundamentals 2020
Accounting
ISBN:
9780357391129
Author:
WHITTENBURG
Publisher:
Cengage
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning