Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
**Income Tax Expense, Income from continuing operations, and net income are wrong. Please help me correct it LeBron's Bookstores has two divisions: books and electronics.
**Income Tax Expense, Income from continuing operations, and net income are wrong. Please help me correct it
LeBron's Bookstores has two divisions: books and electronics. The electronics division had another great year in 2021 with net sales of $10.6 million, cost of goods sold of $6.3 million, operating expenses of $2.6 million, and income tax expense of $425,000. The book division did not do as well and was sold during the year. The loss from operations and sale of the book division was $860,000 before taxes and $645,000 after taxes. Required: Prepare the multiple-step income statement for LeBron's Bookstores, including the proper reporting for the discontinued book division. (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000).) LEBRON'S BOOKSTORES Income Statement For the Year Ended December 31, 2021 Net sales Cost of goods sold $ 10,600,000 6,300,000 Gross profit Operating expenses Income tax expense 4,300,000 2,600,000 -425,000 1,725,000 Income from continuing operations Discontinued operation: Loss from disposal of book division, net of tax Net income 645,000 1,080,000 $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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