Eastern Aviation operated both an airline and several restaurants located near airports. During the year just ended, all restaurant operations were discontinued and the following operating results were reported. Continuing operations (airline): Net sales Costs and expenses Other data: Operating income from restaurants (net of income tax) Gain on sale of restaurants (net of income tax) Nonrecurring loss $ 56,000,000 40,700,000 800,000 4,956,000 3,360,000 All of these amounts are before income taxes unless indicated otherwise. The company's income tax rate is 40 percent. The nonrecurring loss resulted from damage to a warehouse that is not related to the discontinued restaurant operations. Eastern Aviation had 1,000,000 shares of capital stock outstanding throughout the year.
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- Eastern Aviation operated both an airline and several restaurants located near airports. During the year just ended, all restaurant operations were discontinued and the following operating results were reported. Continuing operations (airline): Net sales $ 57,000,000 Costs and expenses 40,200,000 Other data: Operating income from restaurants (net of income tax) 750,000 Gain on sale of restaurants (net of income tax) 4,956,000 Nonrecurring loss 3,360,000 All of these amounts are before income taxes unless indicated otherwise. The company's income tax rate is 40 percent. The nonrecurring loss resulted from damage to a warehouse that is not related to the discontinued restaurant operations. Eastern Aviation had 1,000,000 shares of capital stock outstanding throughout the year. Required: a. Prepare a condensed income statement, including proper presentation of the discontinued restaurant operations and the nonrecurring…(Click the icon to view the information.) The company is subject to a 40% income tax rate. Read the requirements. Requirements a. Prepare a single statement of comprehensive income beginning with operating income. b. Prepare separate statements of net income and comprehensive income. Print - X Done More info 1. Operating income amounted to $310,000. 2. The company sold investments in bonds at a pre-tax loss of $19,000. 3. Tall reported a $5,800 unrealized loss on an available-for-sale portfolio that is included in other comprehensive income. 4. The company reported a $17,000 unrealized gain on its trading portfolio, which is included in net income. 5. Tall committed to discontinue its retail lumber stores division on January 1 of the current year. The retail lumber stores meet the criteria to be presented as a discontinued operation. The retail lumber stores accounted for 25% of the company's operating income. The stores were operated all year. 6. The retail lumber stores division was…Cougar’s Accounting Services provides low-cost tax advice and preparation to those with financial need. At the end of the current period, the company reports the following amounts: Assets = $16,200; Liabilities = $13,600; Revenues = $25,200; Expenses = $31,600. Required: 1. Calculate net loss. 2. Calculate stockholders' equity at the end of the period.
- BB Company had a net income after tax of P3,500,000 for the year ended December 31, 2021 after giving effect to the following events which occurred during the year. The decision was made on May 31 to discontinue the bottles manufacturing segment. The bottle manufacturing segment was sold on June 30. Operating profit from January 1 to May 30 for the bottle manufacturing segment amounted to P950,000 before tax benefit. Bottle manufacturing equipment with a book value of P1,900,000 was sold for P1,150,000. The tax rate was 30%. For the year ended December 31, 2021, how much was the company's after tax income from continuing operations?Misty Company reported the following before-tax items during the current year: Sales revenue Selling and administrative expenses. Restructuring charges. Loss on discontinued operations Misty's effective tax rate is 40%. What is Misty's net income for the current year? $148. $168. $112. None of these answer choices are correct. $600 250 20 50 ICougar’s Accounting Services provides low-cost tax advice and preparation to those with financial need. At the end of the current period, the company reports the following amounts: Assets = $16,000; Liabilities = $13,500; Revenues = $25,000; Expenses = $31,500. Net loss=? Stockholders equity=?
- Southeast Airlines had pretax earnings of $65 million. Included in this amount is income from discontinued operations of $10 million. The company's tax rate is 25%. What is the amount of income tax expense that South-east would report in its income statement for continuing operations? How should the gain on disposal of a dis-continued operation be reported?The following data represent the diffence between accounting and tax income for Seafood Imports Inc., whose pre-tax accounting income is $695,000 for the year ended December 31. The company's income tax rate is 45%. Additional information relevant to income taxes includes the following. a. Capital cost allowance of $270,000 exceeded accounting depreciation expense of $157,000 in the current year. b. Rents of $29,000, applicable to next year, had been collected in December and deferred for financial statement purposes but are taxable in the year received. c. In a previous year, the company established a provision for product warranty expense. A summary of the current year's transactions appears below: ii. Warranty Expense for the Year 42,500 iii. Payments made to fulfill product warranties. 35,000 d. Insurance expense to cover the company's excutive officers was $7,500 for the year. Required: Prepare all the journal entries to record income taxes for Seafood…This is a multiple answer question. Babcock Company just completed its first year of operations and has a net operating loss for tax purposes of $100,000. Babcock expects to be profitable within the next two years. The enacted tax rate is 40%. Which of the following components are included in the journal entry to record the NOL carryforward? (Choose all that apply) A. credit taxes payable $40,000 B. debit income tax expense $40,000 C. credit income tax expense $40,000 D.debit deferred tax asset $40,000 E. credit deferred tax liability $40,000
- The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: $195 Pretax accounting income included: Overweight fines (not deductible for tax purposes) 5 Depreciation expense 70 Depreciation in the tax return 110 The applicable tax rate is 25%. There are no other temporary or permanent differences. Franklin Freightways should have recorded ($ in millions):Accounting Company A is preparing its financial statements as at 31 December 20X3. On 31 December 20X3, Company A acquired an asset for 900, which is expected to be consumed by the end of 20X4. No tax deduction can be obtained for the cost of the asset. The company’s intention is to use the asset and not to sell it. The sale of assets is taxed at 40%. Internal consumption is taxed at 30%. What is the amount of deferred tax liability relating to the acquired asset as at 31 December 20X3?Timber Company provided the following information for the current year: LOADING... (Click the icon to view the information.) The company is subject to a 40% income tax rate. Read the requirements LOADING... . Requirement a. Prepare a single statement of comprehensive income beginning with operating income. (Use parentheses or a minus sign to enter any loss amounts.) Pine Timber Company Statement of Comprehensive Income For the Year Ended December 31 Operating Income $342,000 Other Revenues and Expenses Unrealized Gain on Trading Portfolio $13,000 Loss on Sale of Investments in Bonds (27,000) (14,000) Income Before Tax $328,000 Income Tax Expense (131,200) Income From Continuing Operations $196,800 Discontinued Operations Income From Operations of Discontinued Segment, Net of Tax $22,800 Loss From…