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Presented below are the condensed income statements of PHILIPPIANS Corporation for the years ended December 31, 2019, and 2020. 2020 2019 Sales 10,000,000 9,800,000 Cost

Presented below are the condensed income statements of PHILIPPIANS Corporation for the years ended December 31, 2019, and 2020.

2020 2019
Sales 10,000,000 9,800,000
Cost of Goods Sold (6,700,000) (6,600,000)
Gross Income 3,300,000 3,200,000
Operating Expenses (1,350,000) (1,300,000)
Operating Income 1,950,000 1,900,000
Gain on Sale of Division 400,000 0
Income before tax 2,350,000 1,900,000
Income tax expense (35%) (822,500) (665,000)
Net Income 1,527,500 1,235,000

On October 10, 2020, the firm entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished operationally and for financial reporting purposes, from the other sections/parts of the company

The segment was sold on December 31, 2020, for 3,500,000. The book value of the segments assets was 3,100,000. The segments contribution to PHILIPPIANS operating income before tax for each year was as follows:

2020 (227,500)
2019 162,500

Based on the above data, calculate the following: (a) Income net of tax from continuing operations in 2019.

(b) Income net of tax from continuing operations in 2020.

(c) Net income after tax in 2019.

(d) Net income after tax in 2020.

(e) Assume that by December 31, 2020, the segment had not yet been sold but was considered held for sale. The fair value of the segments asset on December 31 was 3,500,000. How much should be the post-tax income (loss) from discontinued operations for 2020?

(f) Assume that by December 31, 2020, the segment had not yet been sold but was considered held for sale. The fair value of the segments assets on December 31, 2020 was 2,500,000. How much should be the post-tax income (loss) from discontinued operations for 2020?

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