In the current year, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. Item 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Debit $1,474,897 227,000 232,500 474,000 636,000 Credit $2,890,000 257,000 795,000 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.)

In the current year, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. Item 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Debit $1,474,897 227,000 232,500 474,000 636,000 Credit $2,890,000 257,000 795,000 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.)

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter6: Corporations: Redemptions And Liquidations

Section: Chapter Questions

Problem 11DQ

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In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. Item 1. 2. 3. 4. 5. 6. 7. 8. 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Exercise 13-17A (Algo) Income statement categories LO A2 Debit Section $ 1,888,000 277,000 296,000 566,000 817,000 Credit $ 3,700,000 293,000 Indicate where each of the following income-related items for this company appears on its current year income statement by selecting the appropriate section in the drop down beside each item. 989,000 Item Net sales Gain on state's condemnation of company…
Required Information [The following Information applies to the questions displayed below.] In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an Income statement follows. Item 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Prepare the December 31 year-end Income statement. Note: Loss amounts should be Indicated with a minus sign. Net sales Expenses: RANDA MERCHANDISING, INCORPORATED Income Statement For Year Ended December 31 Total operating expenses Other unusual and/or infrequent gains (losses) Discontinued segment: Debit Credit $ 4,000,000 317,000 $…
In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Exercise 17-18A (Algo) Income statement presentation LO A2 Net sales Expenses: Item Total operating expenses Other unusual and/or infrequent gains (losses) Discontinued segment: RANDA MERCHANDISING, INCORPORATED Income Statement For Year Ended December 31 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.) Debit $ $ 1,684,000 247,000 264,000 505,000 728,000 0 0 0 0 Credit $…
Required Information [The following information applies to the questions displayed below.] In the current year, Randa Merchandising Incorporated sold Its Interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an Income statement follows. Item 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Net sales Expenses: RANDA MERCHANDISING, INCORPORATED Income Statement For Year Ended December 31 Total operating expenses Other unusual and/or infrequent gains (losses) Discontinued segment: Debit $ 1,735,000 254,000 272,000 Prepare the December 31 year-end Income statement. (Loss amounts should be indicated with a minus sign.)…
In 2017, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows: Item 1. Net sales 2. Gain on state's condemnation of company property, net of tax 3. Cost of goods sold 4. Income taxes expense 5. Depreciation expense 6. Gain sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike, net of tax Debit $1,551,448 204,000 230,000 461,000 634,000 Credit $3,040,000 281,000 782,500 Prepare the income statement for calendar year 2017. (Loss amounts should be indicated with a minus sign.)
Required information Use the following information for the Exercies below. (Static) [The following information applies to the questions displayed below.] In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. Item 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Exercise 17-18A (Static) Income statement presentation LO A2 Prepare the December 31 year-end income statement. Note: Loss amounts should be indicated with a minus sign. Net sales Expenses: RANDA MERCHANDISING, INCORPORATED Income Statement For Year Ended December 31…
In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. Item Debit Credit 1. Net sales $ 4,700,000 2. Gain on state's condemnation of company property 373,000 3. Cost of goods sold $ 2,399,000 4. Income tax expense 352,000 5. Depreciation expense 376,000 6. Gain on sale of wholesale business segment, net of tax 1,256,000 7. Loss from operating wholesale business segment, net of tax 720,000 8. Loss of assets from meteor strike 1,037,000 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.)
Required information Use the following information for the Exercies below. (Algo) [The following information applies to the questions displayed below.] In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. Debit Item 1. Net sales. 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike $ 1,786,000 262,000 280,000 536,000 772,000 Credit $ 3,500,000 278,000 935,000
Notes to the financial statements reveal the following information: 1. Gain on sale of a portion ofthe branded product line. In Year 10, Henry completed the sale of a portion of one of itsbranded product lines for $735 million. The transaction resulted in a pretax gain of $464.5million. The sale did not qualify as a discontinued operation. Henry did not disclose the taxeffect of the gain reported in Table above.REQUIREDa. Discuss whether you would adjust for each of the following items when using earnings toforecast the future profitability of Henry :1. Gain on sale of a portion of the branded product line.2. Extraordinary loss .b. Indicate the adjustment you would make to Henry’s net income for each item in Requirement(a)
4. Enron Company decided on August 1, 2011 to dispose of a component of its business. The component was sold on November 30, 2011. Enron's income for 2011 included income of P5,000,000 from operating the discontinued segment from January 1 to the sale date. Enron incurred a loss on the November 30 sale of P4,500,000. Ignoring income tax, what amount should be reported in the 2011 income statement as income or loss under "discontinued operation"? O a. 4,500,000 loss O b. 5,000,000 income O c. 500,000 loss O d. 500,000 income
Windsor, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a S222000 loss in the year of disposal. The loss on disposal of the segment was S122000. If the tax rate is 32%, and income before income taxes was $1622000, net income is $1278000. the losses from discontinued operations are reported net of income taxes at $344000. the income tax expense on the income before discontinued operations is $454080. the income from continuing operations is $1102960.
In 2017, Bramble Corporation discontinued its retail store operations to focus on its online opportunities. The elimination of these retail operations is properly considered a discontinued operation. During the current year, its store operations lost $ 750,000 (net of tax) while its online operations reported a profit of $ 3,210,000 (net of tax). Bramble sold the store operations at the end of the year at a loss of $ 1,360,000 (net of tax). Prepare an income statement for 2017 beginning with line item "Income from continuing operations." BRAMBLE CORPORATION Partial Income Statement %24 %24 > > >