Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 4, Problem 4.5BE
To determine
Income statement: Income statement is one of the financial statements, which reports net income or net loss (profit or loss) of the company during a particular period of time.
Earnings per share (EPS): EPS is the portion of net income earned by the company, allocated to each of outstanding share of common stock.
To prepare: The partial income statement of Incorporation W&S for the year ended December 31, 2018.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Data for item nos. 24 & 25
Di Ka Na Mahal Company reported the following information during the first year of operations:
P 9,000,000
1,000,000
1,500,000
2,000,000
30%
Pretax financial income
Nontaxable interest received
Long-term loss accrual in excess of deductible amount
Tax depreciation in excess of financial depreciation
Income tax rate
24. What is the current tax expense?
A. P2,250,000
C. P1,800,000
B. P2,700,000
D. P2,550,000
25. What is the deferred tax asset at the year-end?
В. Р450,000
С. Р750,000
A. P600,000
D. P150,000
View Policies
Current Attempt in Progress
Crane Company has a tax rate of 30 percent and income before non-operating items of $ 1784700. It also has the following items
(gross amounts).
Unusual gain
$110100
Loss from discontinued
914300
operations
Dividend revenue
29200
Income increasing prior
period adjustment
375000
What is the amount of income tax expense Crane would report on its income statement?
O $577200
O $415410
O $542700
O $ 302910
Save for Later
Attempts: 0 of 1 used
Submit Answer
Net Income
Interest
(Loss)
$ 185, 000
179, 600
157, 250
188, 100
Expense
$ 59,200
80, 820
Income Taxes
a.
$ 46, 250
b.
64, 656
66,045
90, 288
C.
44, 030
11, 286
d.
Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?
Complete this question by entering your answers In the tabs below.
Times Interest
Interest
Earned Ratio
Coverage
Compute times interest earned.
Times Interest Earned Ratio
Company
Choose Numerator:
Choose Denominator:
Ratio
%3D
%3D
times
times
times
!!
times
!!
Interest Coverage >
Chapter 4 Solutions
Intermediate Accounting
Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3QCh. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 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
Ch. 4 - The correction of a material error discovered in a...Ch. 4 - Define earnings per share (EPS). For which income...Ch. 4 - Prob. 4.13QCh. 4 - Describe the purpose of the statement of cash...Ch. 4 - Prob. 4.15QCh. 4 - Explain what is meant by noncash investing and...Ch. 4 - Distinguish between the direct method and the...Ch. 4 - Prob. 4.18QCh. 4 - Prob. 4.19QCh. 4 - Show the calculation of the following...Ch. 4 - Show the DuPont frameworks calculation of the...Ch. 4 - Prob. 4.22QCh. 4 - Prob. 4.23QCh. 4 - Prob. 4.1BECh. 4 - Multiple -step income statement LO41, LO43 Refer...Ch. 4 - Prob. 4.3BECh. 4 - Multiple -step income statement LO41, LO43 The...Ch. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Discontinued operations LO44 Refer to the...Ch. 4 - Discontinued operations LO44 Refer to the...Ch. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Statement of cash flows; indirect method LO48 Net...Ch. 4 - Prob. 4.14BECh. 4 - Prob. 4.15BECh. 4 - Profitability ratios LO410 The 2018 income...Ch. 4 - Prob. 4.17BECh. 4 - Inventory turnover ratio LO410 During 2018, Rogue...Ch. 4 - Operating versus Nonoperating Income LO41 Pandora...Ch. 4 - Income statement format; single step and multiple...Ch. 4 - Income statement format; single step and multiple...Ch. 4 - Multiple-step continuous statement of...Ch. 4 - Income statement presentation LO41, LO45 The...Ch. 4 - Prob. 4.6ECh. 4 - Income statement presentation; discontinued...Ch. 4 - Discontinued operations; disposal in subsequent...Ch. 4 - Discontinued operations; disposal in subsequent...Ch. 4 - Earnings per share LO45 The Esposito Import...Ch. 4 - Comprehensive income LO46 The Massoud Consulting...Ch. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - IFRS; statement of cash flows LO48, LO49 Refer to...Ch. 4 - Prob. 4.15ECh. 4 - Prob. 4.16ECh. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Statement of cash flows; direct method LO48 Refer...Ch. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Concepts; terminology LO41, LO42, LO43, LO44,...Ch. 4 - Inventory turnover; calculation and evaluation ...Ch. 4 - Evaluating efficiency of asset management LO410...Ch. 4 - Profitability ratios LO410 The following...Ch. 4 - Prob. 4.28ECh. 4 - Prob. 4.29ECh. 4 - Prob. 4.30ECh. 4 - Prob. 4.31ECh. 4 - Prob. 4.32ECh. 4 - Comparative income statements; multiple-step...Ch. 4 - Discontinued operations LO44 The following...Ch. 4 - Income statement presentation; Discontinued...Ch. 4 - Restructuring costs; Discontinued operations;...Ch. 4 - Income statement presentation; Restructuring...Ch. 4 - Income statement presentation; Discontinued...Ch. 4 - Income statement presentation; statement of...Ch. 4 - Multiple-step statement of income and...Ch. 4 - Statement of cash flows LO48 The Diversified...Ch. 4 - Integration of financial statements; Chapters 3...Ch. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Calculating activity and profitability ratios ...Ch. 4 - Use of ratios to compare two companies in the same...Ch. 4 - Creating a balance sheet from ratios; Chapters 3...Ch. 4 - Prob. 4.15PCh. 4 - Interim financial reporting Appendix 4 Branson...Ch. 4 - Prob. 4.1BYPCh. 4 - Judgment Case 42 Restructuring costs LO43 The...Ch. 4 - Prob. 4.3BYPCh. 4 - Prob. 4.4BYPCh. 4 - Prob. 4.5BYPCh. 4 - Prob. 4.6BYPCh. 4 - Prob. 4.7BYPCh. 4 - IFRS Case 48 Statement of cash flows;...Ch. 4 - Judgment Case 49 Income statement presentation;...Ch. 4 - Prob. 4.10BYPCh. 4 - Integrating Case 412 Balance sheet and income...Ch. 4 - Prob. 4.13BYPCh. 4 - Prob. 4.17BYPCh. 4 - Prob. 4.18BYPCh. 4 - Continuing Cases Target Case LO43, LO44, LO46,...
Knowledge Booster
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.Similar questions
- Question 1 of 5 Concord Corporation has income from continuing operations of $266,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1. 2 An unrealized loss of $84,000 on available-for-sale securities. A gain of $27,000 on the discontinuance of a division (comprised of a $16,000 loss from operations and a $43,000 gain on disposal). Assume all items are subject to income taxes at a 21% tax rate. > Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income. (Enter loss using either a negative sign preceding the number eg. -2,945 or parentheses e.g. (2,945).) Income from Continuing Operations Discontinued Operations Gain from Disposal, Net of Income Taxes Net Income /(Loss) Loss from Operations, Net of Income Tax Savings Net Income /(Loss) Other Comprehensive Income CONCORD CORPORATION Income Statement (Partial) For the Year Ended December 31, 2022 Comprehensive…arrow_forwardNet Income Interest (Loss) $ 185, 000 179, 600 157, 250 188, 100 Expense $ 59, 200 Income Taxes $ 46, 250 64,656 66, 045 90, 288 a. b. 80, 820 44,030 11, 286 c. d. Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due? Complete this question by entering your answers In the tabs below. Times Interest Interest Earned Ratio Coverage Which company indicates the strongest ability to pay interest expense as it comes due? Which company indicates the strongest ability to pay interest expense as it comes due? < Times Interest Earned Ratioarrow_forwardRefer to the following financial information of Scholz Company: NOPAT 8.250.000.00 EBITDA 17,725.000.00 Net Income 5,050,000.00 Capital Expenditures 6,820,000.00 After tax capital costs 6,280.000.00 Tax rate 40% 1. Calculate the Company's depreciation and amortization expense 2. calculate its interest expense. Use 2 decimal places for your final answer. 3. calculate its EVA. Use 2 decimal places for your final answer.arrow_forward
- D Question 10 An entity reported the following assets and liabilities at year end: Amount Property Inventory 7M Plant and Equipment 4M Liabilities 4M Tax base Accounts receivable 3M 5.5M Carrying 10M 5M 2.5M 2.4M 6M The entity had made a provision for inventory obsolescense of 1.5M. Further, an impairment loss against accounts receivable of 600,000 has been made. the tax is 30% What amount should be reported as deferred tax liability?arrow_forwardQuestion 3 of 10 Sheffield Corporation has income from continuing operations of $256,000 for the year E following items (before considering income taxes). 1. 2. An unrealized loss of $86,000 on available-for-sale securities. A gain of $32,000 on the discontinuance of a division (comprised of a $18,000 loss disposal). Assume all items are subject to income taxes at a 25% tax rate. Prepare a partial income statement, beginning with income from continuing operations, and (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945, Type here to search 5 S SHEFFIELD CORPORATION Income Statement (Partial) For the Year Ended December 31, 2022arrow_forward12. Arreaga Corp. has a tax rate of 40 percent and income before non-operating items of €262,000. It also has the following items (gross amounts). € 37,000 101,000 Unusual loss Discontinued operations loss Gain on disposal of equipment Change in accounting principle increasing prior year's income 8,000 53,000 What is the amount of income tax expense Arreaga would report on its income statement? а. €104,800 b. €93,200 c. €111,200 d. €74,000arrow_forward
- ncome Statement SectionsDuring the current year, Dale Corporation sold a segment of its business at a gain of $198,000. Until it was sold, the segment had a current period operating loss of $77,000. The company had $820,000 income from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $820,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40 percent income tax rate. Disregard earnings per share disclosures. Do not use negative signs with any of your answers. Income from Continuing Operations Answer Discontinued Operations Loss from operations of discontinued segment Answer Gain on disposal of discontinued segment Answer Answer Net Income Answerarrow_forwardRefer to the following financial information of Scholz Company: NOPAT 8,250,000 FBITDA 17,725,000 Net Income 5,050,000 Capital Expenditures 6,820,000 After tax capital costs 6,280,000 Tax rate 40% 1.Calculate the Company's depreciation and amortization expense 2. Refer to Scholz Company, calculate its interest expense. Use 2 decimal places for your final answer. 3. Refer to Scholz Company, calculate its EVA. Use 2 decimal places for your final answerarrow_forwardFA12 Income Statement Sections During the current year, Dale Corporation sold a segment of its business at a gain of $315,000. Until it was sold, the segment had a current period operating loss of $112,500. The company had $1,275,000 from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $1,275,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 20% income tax rate. Disregard earnings per share disclosures. (Round all calculations to nearest dollar amount.) Dale Corporation Partial Income Statement Current Year Income from continuing operations Discontinued operations Loss from operations of discontinued segment (net of tax) Answer Gain on disposal of discontinued segment (net of tax) Net income Answer Answer Answer Answerarrow_forward
- Question 1 of 8 View Policies Current Attempt in Progress For its fiscal year ending October 31, 2022. Pharoah Corporation reports the following partial data Income before income taxes $580.000 Income tax experse (32% x $449.000) 143.680 tncome from continuing operations 436,320 Loss on discontinued operations 131000 Net income $305,320 The loss on discontinued operations was comprised ot a $51.000 loss trom operations and a $80.000 loss from disposal. The income tax rate is 32% on all items ta) Prepare a correct partial income statement. beginning with income before income taxes. (Enter loss using either a negative sign preceding the number eg 2,945 or parentheses eg (2,945)) PHAROAH CORPORATIONarrow_forwardI NEED HELP WITH D AND F OF THIS PROBLEM Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31(Millions of Dollars) 2020 2019 Sales $ 12,000 $ 10,000 Operating costs excluding depreciation 10,634 8,702 Depreciation and amortization 410 390 Earnings before interest and taxes $ 956 $ 908 Less interest 260 200 Pre-tax income $ 696 $ 708 Taxes (25%) 174 177 Net income available to common stockholders $ 522 $ 531 Common dividends $ 203 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Assets Cash $ 550 $ 500 Short-term investments 220 200 Accounts receivable 2,750 2,500 Inventories 1,550 1,300 Total current assets $ 5,070 $ 4,500 Net plant and equipment 3,650 3,500 Total assets $ 8,720 $ 8,000 Liabilities and Equity Accounts payable $ 1,100 $…arrow_forwardK McDaniel and Associates, Inc. reported the following amounts on its 2024 income statement: Year Ended December 31, 2024 Net income Income tax expense Interest expense $ 22,950 6,600 3,000 What was McDaniel's times-interest-earned ratio for 2024? OA. 7.65 OB. 10.85 OC. 9.85 OD. 8.65 point(s) possible ...arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License