Munnster Corporation's income statements for the years ended December 31, 2017, and 2016 included the following information
Question:
Munnster Corporation's income statements for the years ended December 31, 2017, and 2016 included the following information before adjustments:
On January 1, 2017, Munnster Corporation agreed to sell the assets and product line of one of its operating divisions for $2,000,000. The sale was consummated on December 31, 2017, and it resulted in a gain on disposition of $350,000. This division's pre-tax net losses were $505,000 in 2017 and $170,000 in 2016. The income tax rate for both years was 30%.
Required:
Starting with operating income (before tax), prepare revised comparative income statements for 2017 and 2016 showing appropriate details for gain (loss) from discontinued operations.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
The following analysis shows how the revised income statem...View the full answer
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
