3 On December 31, the end of the current fiscal year, a US company completed the sale of one business segment $9.6 million. We know that the business segment qualifies as a component of thecompany, according to GAAP. Please also consider the following additional information: • The book value of the assets of the segment was $7.3 million at the time of the sale. . The income from operations of the segment during the current year was $4.3 million. • Pretax income from other continuing operations for the year totaled $12.3 million. . The income tax rate is 25%. Pleaseprepare the lower portion of the current year income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.

On January 1, 20X1, Prime Company purchased all the outstanding stock of Spring Company, located in Canada, for $137,700. On January 1, 20X1, the direct exchange rate for the Canadian dollar (C$) was C$1 = $0.81. Spring's book value on January 1, 20X1, was C$96,000. On January 1, 20X1, the book value of the Spring's identifiable assets and liabilities approximated their fair values except for property, plant, and equipment. The remaining useful life of Spring's property, plant and equipment at January 1, 20X1, was 10 years. During 20X1, Spring earned C$24,000 in income and declared and paid C$7,400 in dividends. The dividends were declared and paid in Canadian dollars when the exchange rate was C$1 = $0.75. On December 31, 20X1, Prime continues to hold the Canadian currency received from the dividend. On December 31, 20X1, the direct exchange rate is C$1 = $0.64. The average exchange rate during 20X1 was C$1 = $0.76. Management has determined that the Canadian dollar is Spring's…

On 12/20/20x1, Banana Company, a U.S.-based entity, acquired all of the outstanding common stock of Pooma Industries, which is located in Switzerland.   The cost of acquiring Watermellon was 8.2 million Swiss francs.  On the acquisition date, the U.S. dollar/Swiss franc exchange rate was $0.52 = SF1.   The assets and liabilities acquired at 12/20/20x1 were: Assets Swiss Franc Liabilities and Equity Swiss Franc Cash 500,000 Notes Payable 1,270,500 Inventory 770,500 Shareholders' Equity 3,500,000 Property, plant and equipment 3,500,000     Total Assets $4,770,500 Total Liabilities and Shareholders’ Equity $4,770,500   At 12/31/20x1, Banana Company prepares its year-end financial statements. By 12/31/20x1, the U.S. dollar/Swiss franc exchange rate was $0.535 = SF1.   For purposes of this problem, assume that after the 12/20/20x1, Watermellon Industries had no additional transactions that changed their financial position.   Required…

On January 1, 20X8, Pace Company acquired all of the outstanding stock of Spin PLC, a British Company, for $350,000. Spin's net assets on the date of acquisition were 250,000 pounds (£). On January 1, 20X8, the book and fair values of the Spin's identifiable assets and liabilitie approximated their fair values except for equipment. The remaining useful life of Spin's equipment at January 1, 20X8, was 10 years. During 20X8, Spin earned 60,000 pounds in income and declared and paid 10,000 pounds in dividends. The dividends were declared and paid in pounds on November 1, 20X8. Pace's income from its own operations was $150,000 for 20X8. Pace's total stockholders' equity on January 1, 20X8 was $1,000,000. It declared $50,000 of dividends during 20X8. Assume Pace uses the fully adjusted equity method to account for its investment in Spin. Management has determined that the pound is Spin's appropriate functional currency. Relevant exchange rates were as follows: January 1, 20X8 November 1,…