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On October 5 , 2 0 2 3 , Diamond in the Sheffield Recruiting Group Inc. ' s board of directors decided to dispose of
On October Diamond in the Sheffield Recruiting Group Inc.s board of directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately of its income from its human resources management practice. The Blue Division gets contracts to perform human resources management on an outsourced basis. The board decided to dispose of the division because of unfavourable operating results. Net income for Diamond was $ for the fiscal year ended December after a charge for tax at and after a writedown for the Blue assets Income from operations of the Blue Division accounted for $after tax of this amount. Because of the unfavourable results and the extreme competition, the board believes that it cannot sell the business intact. Its final decision is to auction off the office equipment. The equipment is the division's only asset and has a carrying value of $ at October The board believes that proceeds from the sale will be approximately $ after the auction expenses. Currently, the equipment's estimated fair value is $ The Blue Division qualifies for treatment as a discontinued operation. Diamond prepares financial statements in accordance with ASPE. a Prepare a partial income statement for Diamond in the Sheffield Recruiting Group. The income statement should begin with income from continuing operations before income tax.Diamond in the Sheffield Recruiting Group Inc. Partial Income StatementDiamond in the Sheffield Recruiting Group Inc. Partial Income Statement For the Year Ended December perations before Income Tax $ ff the Discontinued Blue Division, less Applicable Income Tax Assets of Discontinued Operations, less Applicable Income Tax Recovery
On October Diamond in the Sheffield Recruiting Group Inc.s board of directors decided to dispose of the Blue Division. A
formal plan was approved. Diamond derives approximately of its income from its human resources management practice. The
Blue Division gets contracts to perform human resources management on an outsourced basis. The board decided to dispose of the
division because of unfavourable operating results.
Net income for Diamond was $ for the fiscal year ended December after a charge for tax at and after a
writedown for the Blue assets Income from operations of the Blue Division accounted for $after tax of this amount.
Because of the unfavourable results and the extreme competition, the board believes that it cannot sell the business intact. Its final
decision is to auction off the office equipment. The equipment is the division's only asset and has a carrying value of $ at
October The board believes that proceeds from the sale will be approximately $ after the auction expenses. Currently,
the equipment's estimated fair value is $ The Blue Division qualifies for treatment as a discontinued operation. Diamond
prepares financial statements in accordance with ASPE.
a
Prepare a partial income statement for Diamond in the Sheffield Recruiting Group. The income statement should begin with income
from continuing operations before income tax.Diamond in the Sheffield Recruiting Group Inc.
Partial Income StatementDiamond in the Sheffield Recruiting Group Inc.
Partial Income Statement
For the Year Ended December
perations before Income Tax
$
ff the Discontinued Blue Division, less Applicable Income Tax
Assets of Discontinued Operations, less Applicable Income Tax Recovery
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