Homework Help is Here – Start Your Trial Now!
Business
Accounting
the year ending considering the following transactions and events. All of the items described below are before taxes and the amounts should considered material. 1. In November 2024, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company ha adopted a plan to sell the chain in May 2024. The income from operations of the chain from January 1, 2024, through No was $177,000 and the loss on sale of the chain's assets was $334,000. 2. In 2024, Olivo sold one of its six factories for $1,540,000. At the time of the sale, the factory had a book value of $1,270,0 factory was not considered a component of the entity. 3. In 2022, Olivo's accountant omitted the annual adjustment for patent amortization expense of $137,000. The error was n discovered until December 2024. Required:

the year ending considering the following transactions and events. All of the items described below are before taxes and the amounts should considered material. 1. In November 2024, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company ha adopted a plan to sell the chain in May 2024. The income from operations of the chain from January 1, 2024, through No was $177,000 and the loss on sale of the chain's assets was $334,000. 2. In 2024, Olivo sold one of its six factories for $1,540,000. At the time of the sale, the factory had a book value of $1,270,0 factory was not considered a component of the entity. 3. In 2022, Olivo's accountant omitted the annual adjustment for patent amortization expense of $137,000. The error was n discovered until December 2024. Required:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

paresh

For the year ending December 31, 2024, Olivo Corporation had income from continuing operations before taxes of $1,370,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. 1. In November 2024, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2024. The income from operations of the chain from January 1, 2024, through November was $177,000 and the loss on sale of the chain's assets was $334,000. 2. In 2024, Olivo sold one of its six factories for $1,540,000. At the time of the sale, the factory had a book value of $1,270,000. The factory was not considered a component of the entity. 3. In 2022, Olivo's accountant omitted the annual adjustment for patent amortization expense of $137,000. The error was not discovered until December 2024. Required: Prepare Olivo's income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2024. Assume an income tax rate of 25%. Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. OLIVO CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Loss on discontinued operations Net income $ 0 0 0
Transcribed Image Text:For the year ending December 31, 2024, Olivo Corporation had income from continuing operations before taxes of $1,370,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. 1. In November 2024, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2024. The income from operations of the chain from January 1, 2024, through November was $177,000 and the loss on sale of the chain's assets was $334,000. 2. In 2024, Olivo sold one of its six factories for $1,540,000. At the time of the sale, the factory had a book value of $1,270,000. The factory was not considered a component of the entity. 3. In 2022, Olivo's accountant omitted the annual adjustment for patent amortization expense of $137,000. The error was not discovered until December 2024. Required: Prepare Olivo's income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2024. Assume an income tax rate of 25%. Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. OLIVO CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Loss on discontinued operations Net income $ 0 0 0
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Depletions and Amortizations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS