CAN YOU PLEASE HELP ME FIGURE THIS OUT
Desert Company reported the following nominal account items for the year ended 2018: Sales 1,100,000 COGS 215,000 Research and Development 14,000 Gain on Land Sale 35,500 Selling Expenses 240,000 Unrealized Foreign Currency Translation Gain 42,000 Unrealized Holding Loss on Trading Securities 10,000 Preferred Stock Dividends Declared 55,000 Unrealized Holding Gain on AFS 51.000 Securities Common Stock Dividends Declared 15,000 Labor strike loss (1st ever) 10,900 Dividend Revenue 17,800 Sales Discount 20,000 On-going Restructuring Costs 16,000 In 2017, Desert, Co. discontinued its Book division, but the disposal did not take place until 2018. In 2017, the Book division had a pretax operating income of $210,000. The Book division had a historical cost of $3,800,000 and Accumulated Depreciation of $2,100,000. At the end of 2017, the fair value of the Book division was $1,580,000 with an estimated cost of disposal of $500,000. In 2018, the Book division had a pretax operating income of $170,000. The sales price of the Book division was $1,480,000, but Desert had to pay $258,000 cost to sell the Book division. Income tax expense for the year has yet to be accrued. Desert's income tax rate is 35% on all items. Using this information, calculate Desert's Income from Operations for 2018. Using the information in Question 1 and your prior calculations, determine Desert's Income from Continuing Operations for 2018. Using the information in Question 1, determine the following for Desert, with regard to the discontinued Book Division: Does Desert have an impairment loss on the Book Division for 2017? (answer Yes or No) If Yes, what is the value of the impairment loss (pre-tax). If No, write What is the book value of the Book Division as of 1/1/2018? Did Desert have a Gain or Loss on the sale of the Book Division in 2018? (answer Gain or Loss) Using the information in Question 1 and your prior calculations, determine Desert's Net Income for 2018. Desert Company reported the following nominal account items for the year ended 2018: Sales 1,100,000 COGS 215,000 Research and Development 14,000 Gain on Land Sale 35,500 Selling Expenses 240,000 Unrealized Foreign Currency Translation Gain 42,000 Unrealized Holding Loss on Trading Securities 10,000 Preferred Stock Dividends Declared 55,000 Unrealized Holding Gain on AFS 51.000 Securities Common Stock Dividends Declared 15,000 Labor strike loss (1st ever) 10,900 Dividend Revenue 17,800 Sales Discount 20,000 On-going Restructuring Costs 16,000 In 2017, Desert, Co. discontinued its Book division, but the disposal did not take place until 2018. In 2017, the Book division had a pretax operating income of $210,000. The Book division had a historical cost of $3,800,000 and Accumulated Depreciation of $2,100,000. At the end of 2017, the fair value of the Book division was $1,580,000 with an estimated cost of disposal of $500,000. In 2018, the Book division had a pretax operating income of $170,000. The sales price of the Book division was $1,480,000, but Desert had to pay $258,000 cost to sell the Book division. Income tax expense for the year has yet to be accrued. Desert's income tax rate is 35% on all items. Using this information, calculate Desert's Income from Operations for 2018. Using the information in Question 1 and your prior calculations, determine Desert's Income from Continuing Operations for 2018. Using the information in Question 1, determine the following for Desert, with regard to the discontinued Book Division: Does Desert have an impairment loss on the Book Division for 2017? (answer Yes or No) If Yes, what is the value of the impairment loss (pre-tax). If No, write What is the book value of the Book Division as of 1/1/2018? Did Desert have a Gain or Loss on the sale of the Book Division in 2018? (answer Gain or Loss) Using the information in Question 1 and your prior calculations, determine Desert's Net Income for 2018
