Question
Answer all Four Parts Regarding Gold Co. Question 1: Gold Co. reported the following for the year-ended December 31, 2019: Comprehensive income: $100,000 Other Comprehensive
Answer all Four Parts Regarding Gold Co.
Question 1: Gold Co. reported the following for the year-ended December 31, 2019:
Comprehensive income: $100,000
Other Comprehensive Income: $20,000
Loss on sale of equipment: $5,000
Bad Debts Expense: $5,000
What was Gold's net income for the year-ended December 31, 2019?
A) $100,000.
B) $120,000.
C) $125,000.
D) $130,000.
Question 2: Gold Co. incurred a $50,000 unsual and infrequent gain. How should this be reported?
A) As a discontinued operation, net of tax.
B) As part of net income.
C) As an adjustment to the beginning balance of retained earnings.
D) As an unusual and infrequent gain, net of tax.
Question 3: For the year ended December 31, 2018 Gold Co. had $10,000 in revenues and $2,000 in expenses. Gold's closing journal entries would include all of the following except:
A) Revenues........................10,000
Income Summary...........10,000
B) Expenses............................2,000
Income Summary......................2,000
C) Income Summary............................2,000
Expenses......................2,000
D) Income Summary............................8,000
Retained Earnings......................8,000
Question 4: Gold Co. reported a gross loss on discontinued operations of $400,000. The tax rate is 20%. What is the net of tax amount of the loss from continuing operations?
A) $320,000.
B) ($320,000).
C) $80,000.
D) ($80,000).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started