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).