HOW WOULD YOU SOLVE PROBLEM 4-6

le of the chai's as CHAPTER 4 of the sale. The lachty of the entity tization The income Stwiement Comprehensive income, and the woment of Cash Flow 221 MUIY January 1, 2021, through November was STOU. 2. In 2021. Olivo sold one of its six factories for $1.200,000. At the time value of $1,100,000. The factory was not considered a component of the In 2019. Oliva's accountant omitted the annual adjustment for patentam error was not discovered until December 2021 Required: Premare Olivo's income statement, beginning with income from continuine ended December 31, 2021. Assume an income tax rate of 25%. Ignore Eps tinuing operations before EPS disclosures In addition during the year, the company completed the disposal of its plastic business and incurred a los frem operations of $1.6 millions d again a disposal of the componenti's assets of 52 million. There were 500.000 shares of common stock i ng the 2021. Income tax expense has not yet been recorded. The income tax rate is 135o all items of income to Required: Prepare a multiple step income statement for 2021.including EPS disclosures. Use a multi-step forma similar to Illustration of this chapter to prepared from go o d then add to this the discontin- med operations portion of the income statement Inc., is presented below: P4-7 Income statement presentation statement of comprehensive income: unusual items L04-1, L04-3 through L04-6 $ 425 126 555 P4-4 The preliminary 2021 income statement of Alexian Systems, Inc., is presented Restructuring ALEXIAN SYSTEMS, INC. costs: Income Statement discontinued For the Year Ended December 31, 2021 operations: ($ in millions, except earnings per share) accounting error Revenues and gains: L04-3, L04-4 Sales revenue LO4-5 Interest revenue Other income Total revenues and gains Expenses: Cost of goods sold 245 Selling and administrative expense 154 Income tax expense 39 Total expenses Net Income Earnings per share Additional Information: 1. Selling and administrative expense includes $26 million in restructuring costs. 2. Included in other income is $120 million in income from a discontinued operation. This consis lion in operating income and a $30 million gain on disposal. The remaining S6 million is from the sale of investments. 3. Cost of goods sold was increased by $40 million to correct an error in the calculation of 2000's ende fory. The amount is material. Required: For each of the three additional facts listed in the additional information, discuss the appropriate the item described. Do not prepare a revised statement. The following income statementems appeared on the adjusted trial balance of Scheme Manufacturing Corporation for the year ended December 31, 2015 is thousands sols 515,300,ost of posso 56.200. selling expenses, S1300, Beneral and administrative expenses. S . 540 expense, SIND. Income taxes have not yet been recorded. The company's income tax rate 25 e alles of income or loss. These revenue and expense liems spear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate realment of the following nonrecurring transactions that also occurred during 2021 (s in thes ). All transactions are material in amount. 1. Investments were sold during the year at a loss of $220. Schembri also had an unrealised gain of $320 So the year on investments in debt securities that quality is components of comprehensive income 2. One of the company's factories was closed during the year. Restructuring costs incurred were $1.200 3. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of 5561 in 2021 prior to the sale, and its assets were sold at again of $1,400. 4. In 2021. the company's accountant discovered that depreciation expense in 2030 for the office building was understated by S200 5. Negative foreign currency translation adjustment for the year totaled S240 Required: 1. Prepare Schembris single, continuous multiple-step statement of comprehensive income for 2121, including earnings per share disclosures. There were 1,000,000 shares of common stock outstanding at the beginning of the year and an additional 400.000 stures were issued on July 1, 2021. Use a multiple-step format similar to the one in the Concept Review Exercise at the end of Part A of this chapter 2. Prepare a separate statement of comprehensive income is 2021. 439 $ 117 $5.85 P4-8 Multiple-step statement of income and comprehensive income LO4-1, L04-3 L04-5, L04-6 P4-5 Income statement presentation: restructuring costs; discontinued operations; accounting error L04-1, L04-3, L04-4, L04-5 This is a variation of the previous problem focusing on income statement presentation Required: Refer to the information presented in P44. Prepare a revised income statement for 2021 reflecting the facts. Use a multiple-step format similar to Illustration 44 of this chapter to prepare income from operations, and then add to this the discontinued operations portion of the income statement. As income tax rate of 25% applies to all income statement items, and that 20 million shares of commal outstanding throughout the year. Duke Company's records show the following account balances at December 31, 2021; Sales revenue $15,000,000 Cost of goods sold 9,000.000 General and administrative expense 1.000.000 Selling expense 500.000 Interest expense 700.000 Income tax expense has not yet been determined. The following events also occurred during 2021. Alltra tions are material in amount 1.500.000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are considered to be un 3. It was discovered that depreciation expense for 2020 was understand by $50,000 due to a matematical 4. The company experienced a negative foreign currency translation adjustment of S200,000 and had in ut ized gain on debt securities of S180,000 Required: Prepare a single, continuous multiple-stop statement of comprehensive income for 2021. The company's tax rate on all items affecting comprehensive income is 25. Each component of the comprehensive should be displayed net of tax. Ignore EPS disclosures. Use a multiple step format similar to the one in the Review Exercise at the end of Part A of this chapter (excluding discontinued operations shown there) The Diversified Portfolio Corporation provides investment advice to customers. A condensed income st for the year ended December 31, 2021. appears below: Service revenue $900,000 700.000 Operating expenses 200,000 Income before income taxes 50,000 Income tax expense $150,000 Net Income Rembrandt Paint Company had the following income statement items for the year ende (5 in thousands) the year ended December 12 P4-9 Statement of cash flows L04-8 $18,000 100 come statement esentation: continued erations: EPS 04-1, L04-3, 04-4, LO4-5 300 Sales revenue Interest revenue Interest expense Cost of goods sold Selling and administrative expense Restructuring costs 10.500 2,500 800