On September 15, 2023, ZTH Inc.'s Board of Directors developed a formal plan to dispose of its Horse division and, the sale qualifies for discontinued operations treatment. On December 1, 2023 ZTH found a buyer for the Horse Division. The agreed sales price was $1,500,000 and ownership will transfer on January 31, 2024 ZTH's year end is December Pertinent data related to the Horse Division is as follows: ZTH net income for the year ended December 31, 2023 (including Horse division net income/loss for the $1,840,000 year) Horse Division net income January 1 to September 15, 2023 Horse Division net loss September 15 to December 31, 2023 Fair value less cost to sell of Horse Division's net assets Carrying value of Horse Division's net assets $325,000 ($150,000) $1,500,000 $1,750,000 ZTH's tax rate is 25% on all sources of income losses. Net incomes and net losses reported above are net of taxes. ZTH prepares its financial statements in accordance with IFRS Instructions Prepare a partial statement of comprehensive income, starting with net income from continuing operations. Ignore EPS calculations.

On September 15, 2023, ZTH Inc.'s Board of Directors developed a formal plan to dispose of its Horse division and, the sale qualifies for discontinued operations treatment. On December 1, 2023 ZTH found a buyer for the Horse Division. The agreed sales price was $1,500,000 and ownership will transfer on January 31, 2024 ZTH's year end is December Pertinent data related to the Horse Division is as follows: ZTH net income for the year ended December 31, 2023 (including Horse division net income/loss for the $1,840,000 year) Horse Division net income January 1 to September 15, 2023 Horse Division net loss September 15 to December 31, 2023 Fair value less cost to sell of Horse Division's net assets Carrying value of Horse Division's net assets $325,000 ($150,000) $1,500,000 $1,750,000 ZTH's tax rate is 25% on all sources of income losses. Net incomes and net losses reported above are net of taxes. ZTH prepares its financial statements in accordance with IFRS Instructions Prepare a partial statement of comprehensive income, starting with net income from continuing operations. Ignore EPS calculations.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2P

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