Discontinued operations p 4-2

Required: Prepare a multiple-step income statemett for the Reed Company for 2013 shoning 2012 information int stares cutstanding The foilowing condeased inconse statements of the lackson Holdiag Corepeny are presented for the itwo years ended Decenaber 31. 2913 and 2012 On Octoher 15, 2013, Lackwe entered into a sentative apreement to sell the assets of one of its divivions. T division cuemprives opcrations and canly flows that can be clearly tistinguished, operationally and far financial frome poerations for each year was as follows: Assume an income tas rate of 20. Required: before income tawes. Ignuee EPS divelanutes. 2. Assame that by Decemiter 31, 2013, the divivien had net yet been wold but was cuevidered held for ale. The fair value of the dirvision's assets on December 31 was 55,000,000, How would the presertation of discontimed operations be differeet from yinit answer to requiretnent 17 7. Asume that by December 31, 2013, the division had not yet beca sald but was concidened held for sale. The fair value of the dhrision's amets on December 31 was 53,900,000. How worild the presentation of discontinucd operations be differenil from yout answer to requitement I? Foe the year ending December 31, 2013. Micron Corponation had income from conatanuing operations before taxes of $1,200,0000 before convidering the following transactions and events. All of the itetrs desenibed belo are before taves and the amounts shemld be considered material. 1. During 2013, ane of Micron's factories Was damaged is an eartherake As a result the firter recogyrized a of 5800,000 . The event is considered unusual and infrequcat. 2. In November of 2013, Micran sold its Waithe House resuurant chain that qualificd as a component of at eatity. The compary had adoptod a plan to sell the chaiz in May of 2013. The incesot from operations of chain from lanuary 1. 2013, thruegh Noventer was 5160.000 and the lass on ale of the chaim's awers a 5400,000 . 3. In 3013. Misman sold one of its sis factories for $1,200.5000. At the time of the oale, the factory had a care value of $1,100,000. The factory was not convideted a component of the entily. 4. In 2011. Microd"' accountakt umitied the annal adjustmieat fer patent annertiration espense of 5120000 The error was not discevered uatil Decenber 2013. Required; 1. Prepare Micnon's incotne statemest, begianing with insome from contimaing operations before taues, for year endeal December 31, 2013. Assame an income tax rate of 20\%, Ignvere EPS disclonwres. 2. Briefly cxplain the motivation fior sepregating oentain incuene statement events froan incone from contima onerntions