Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please do both pictures. Thanks! 1) 2) Big Dog Corp is developing financial statements for the year ended December 31, 2019. The average tax rate

please do both pictures. Thanks! 1) image text in transcribed
2)image text in transcribed
Big Dog Corp is developing financial statements for the year ended December 31, 2019. The average tax rate is 30%. The following pre-tax information is available: Revenue Expenses Loss from Discontinued Operations Correction of prior years' error (credit) 2019 $420,000 360,000 24.000 22,000 Unrealized foreign exchange gain on translation of foreign subsidiary (pre tax) $10,000 Required Assuming all of the above items are subject to the average tax rate of 30%, prepare in proper form, a Statement of Comprehensive Income for the year ended December 31, 2019. Fax Inc. earned $90,000 and $110,000 of income from continuing operations after taxes in Years 1 and 2 respectively. The tax rate is 40%. The firm decided to sell one of its business segments on November 1, Year 1. The expected disposal date is February 1, Year 2. The segment's income was a pre-tax loss of $20,000 (not included in income from continuing operations) for Year 1 through November 1, Year 1. However, the segment earned $30,000 pre-tax income for the remainder of Year 1 and was expected to earn $25,000 pre-tax in Year 2 to the disposal date. The selling price of the segment is $100,000 and the book value of net assets is $80,000. During Year 2, the segment actually earned $35,000 pre-tax. Required For both years, prepare the bottom portion of the Statement of Comprehensive Income including a section for discontinued operations for this firm

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Sector Accounting

Authors: Rowan Jones, Maurice Pendlebury

6th Edition

0273720368, 9780273720362

More Books

Students also viewed these Accounting questions