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34. Lillys Boutique has two divisions: clothing and shoes. The shoes division had another good year with net sales of $80,000, cost of goods sold
- 34. Lillys Boutique has two divisions: clothing and shoes. The shoes division had another good year with net sales of $80,000, cost of goods sold of $35,000, operating expenses of $10,000, and income tax expense of $5,000. The clothing division did not do as well and was sold during the year. The loss from operations and sale of the clothing division was $12,000 before taxes and $8,000 after taxes. Assuming the sale of the clothing division is reported as a discontinued operation, at what amount did Lillys Boutique report net income?
- $18,000
- $22,000
- $30,000
- $38,000
- 35. What is the correct order to present the following items in the income statement?
I Discontinued operations
II Income tax expense
III Net income
IV Other revenues and expenses
-
- IV, II, I, III
- IV, I, II, III
- I, IV, II, III
- I, II, IV, III
- 36. Other revenue and expense items are included as part of income from continuing operations.
- true
- False
- 37. Which of the following is not an example of an other revenue or expense item?
- loss due to the write-down of inventory
- loss of disposal of a major line of business
- loss on the sale of equipment
- Uninsured loss due to a flood
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