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Mountain View's activities for the year included the following: Gross Sales 7,400,000 Cost of goods sold 3,100,000 Selling and administrative expenses 900,000 Adjustment for a
Mountain View's activities for the year included the following:
Gross Sales | 7,400,000 |
Cost of goods sold | 3,100,000 |
Selling and administrative expenses | 900,000 |
Adjustment for a prior year understatement of depreciation expense | 112,000 |
Sales returns | 71,000 |
Loss on operations of discontinued Segment A | 411,000 |
Royalty income from infringement settlement | 800,000 |
Unrealized loss on equity securities | 41,000 |
Gain on disposal of assets of discontinued business Segment A | 375,000 |
Extraordinary loss from hail storm | 143,000 |
Gain on early extinguishment of convertible bonds | 201,000 |
The company has a 30% effective income tax rate.
What is the company's income from continuing operations for the year?
- A.
$2,902,200
- B.
$2,761,500
- C.
$2,980,600
- D.
$2,955,400
-
Mountain View's activities for the year included the following:
Gross Sales 7,400,000 Cost of goods sold 3,100,000 Selling and administrative expenses 900,000 Adjustment for a prior year understatement of depreciation expense 112,000 Sales returns 71,000 Loss on operations of discontinued Segment A 411,000 Royalty income from infringement settlement 800,000 Unrealized loss on equity securities 41,000 Gain on disposal of assets of discontinued business Segment A 375,000 Extraordinary loss from hail storm 143,000 Gain on early extinguishment of convertible bonds 201,000 The company has a 30% effective income tax rate.
What amount would the company report on the income statement relating to the discontinued operations for the year?
- A.
(25,200)
- B.
(287,700)
- C.
262,500
- D.
(36,000)
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