On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its semiconductor business for sale at year- end. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $11 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. . The book value of the assets of the segment at the time of the sale was $8 million. • The loss from operations of the segment during 2024 was $4.6 million. • Pretax income from other continuing operations for the year totaled $7.6 million. . The income tax rate is 25%. Prepare the lower portion of the 2024 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. Answer is complete but not entirely correct. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Loss from operations of discontinued component Income tax benefit Loss on discontinued operations Net income ♥ 1000 (1,600,000) X 400,000 X $ 7,600,000 1,900,000 $5,700,000 2,000,000 $ 7,700,000
On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its semiconductor business for sale at year- end. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $11 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. . The book value of the assets of the segment at the time of the sale was $8 million. • The loss from operations of the segment during 2024 was $4.6 million. • Pretax income from other continuing operations for the year totaled $7.6 million. . The income tax rate is 25%. Prepare the lower portion of the 2024 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. Answer is complete but not entirely correct. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Loss from operations of discontinued component Income tax benefit Loss on discontinued operations Net income ♥ 1000 (1,600,000) X 400,000 X $ 7,600,000 1,900,000 $5,700,000 2,000,000 $ 7,700,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its semiconductor business for sale at year-
end. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $11 million. The semiconductor business
segment qualifies as a component of the entity according to GAAP. Consider the following additional information.
The book value of the assets of the segment at the time of the sale was $8 million.
●
The loss from operations of the segment during 2024 was $4.6 million.
• Pretax income from other continuing operations for the year totaled $7.6 million.
. The income tax rate is 25%.
●
Prepare the lower portion of the 2024 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.
Answer is complete but not entirely correct.
CALIFORNIA MICROTECH CORPORATION
Partial Income Statement
For the Year Ended December 31, 2024
Income from continuing operations before income
taxes
Income tax expense
Income from continuing operations
Discontinued operations:
Loss from operations of discontinued component
Income tax benefit
Loss on discontinued operations
Net income
3 3 3 3
(1,600,000) X
400,000 X
$7,600,000
1,900,000
$ 5,700,000
2,000,000 X
$ 7,700,000
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