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1. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to

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1. In November 2021, 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 2021. The income from operations of the chain from January 1, 2021, through November was 5166,000 and the loss on sale of the chain's assets was $312,000. 2. In 2021. Olivo sold one of its six factories for $1,320,000. At the time of the sale, the factory had a book value of $1,160,000. The factory was not considered a component of the entity 3. In 2019, Olivo's accountant omitted the annual adjustment for patent amortization expense of $126,000. The error was not discovered until December 2021 300 Required: Prepare Olivo's income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2021. Assume an income tax rate of 25%, Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) OLIVO CORPORATION Partial income Statement For the Year Ended December 31, 2021 Income from continuing operations before income taxes Income tax expense Retro 1.450.000 Income from continuing operation Discontinued operations Los from operations of continued component Income tax bent Loos on icon operations Net Income $1450.000 1. In November 2021, 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 2021. The income from operations of the chain from January 1, 2021, through November was 5166,000 and the loss on sale of the chain's assets was $312,000. 2. In 2021. Olivo sold one of its six factories for $1,320,000. At the time of the sale, the factory had a book value of $1,160,000. The factory was not considered a component of the entity 3. In 2019, Olivo's accountant omitted the annual adjustment for patent amortization expense of $126,000. The error was not discovered until December 2021 300 Required: Prepare Olivo's income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2021. Assume an income tax rate of 25%, Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) OLIVO CORPORATION Partial income Statement For the Year Ended December 31, 2021 Income from continuing operations before income taxes Income tax expense Retro 1.450.000 Income from continuing operation Discontinued operations Los from operations of continued component Income tax bent Loos on icon operations Net Income $1450.000

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