An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business. Revised income statement according to generally accepted accounting principles.

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Answer 1

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Chapter 4, Problem 4.2P

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

Revised income statement according to generally accepted accounting principles.

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

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On January 1, 2021, Stand Company changed to the percentage of completion method of income recognition for financial statement reporting but not for income tax reporting. Stand can justify this change in accounting policy. As of December 31, 2020, Stand compiled data showing that income under the completed contract method aggregated P700,000. If the percentage of completion method had been used, the accumulated income through December 31, 2020 would have been P880,000. Assuming an income tax rate of 35% for all years, the cumulative effect of this accounting change that should be reported by Stand in 2021 shall be?

During 2023, Door Inc. decided to dispose of Bell Division, which is considered a separate reporting segment. Door estimates it can sell Bell at a loss of $30,000, and does so on May 1, 2023. Bell's operating income from January 1 to April 30 was $23,000. Ignoring income taxes, and assuming statements are prepared under ASPE, the discontinued operations section of Door's income statement for the year ended December 31, 2023 should report only the income from Door's other divisions. Since it no longer owns Bell at December 31, Door does not need to report anything relating to Bell's operations during the year. the $23,000 operating income and the $30,000 loss in the body of the income statement. the $23,000 operating income and the $30,000 loss in the discontinued operations section of the income statement. the $23,000 operating income in the body of the income statement and the $30,000 loss in the discontinued operations section of the income statement.

On January 1, 2021, Concretti Inc. had a division that met the criteria for discontinuance of a business component. For the period January 1 through October 15, 2021, the component had revenue of P500,000 and expenses of P800,000. The assets of the component were sold on October 15, 2021 at a loss of P100,000. How should Concretti report the component's operation for 2021? A. 500,000 and 800,000 should be included in continuing operationsB. 400,000 should be reported as loss on discontinued operationsC. 400,000 should be reported as an extraordinary lossD. 300,000 should be reported as loss on discontinued operations

Answer 2

Question

Chapter 4, Problem 4.2P

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

Revised income statement according to generally accepted accounting principles.

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

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Answer 3

Question

Chapter 4, Problem 4.2P

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

Revised income statement according to generally accepted accounting principles.

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

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Answer 4

Question

Chapter 4, Problem 4.2P

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

Revised income statement according to generally accepted accounting principles.

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

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Answer 5

Chapter 4, Problem 4.2P

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

Revised income statement according to generally accepted accounting principles.

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

Answer 6

Chapter 4, Problem 4.2P

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

Revised income statement according to generally accepted accounting principles.

Answer 7

Chapter 4, Problem 4.2P

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

Revised income statement according to generally accepted accounting principles.

Answer 8

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

Answer 9

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

Answer 10

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

Answer 11

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount to be presented for discontinued operations.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3Q Ch. 4 - Prob. 4.4Q Ch. 4 - Prob. 4.5Q Ch. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - What is meant by a change in accounting principle?...Ch. 4 - Prob. 4.10Q

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