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Results of Discontinued Operations During December 2016, Smythe Company decides to sell Division F (a component of the company). On December 31, 2016, the company

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Results of Discontinued Operations During December 2016, Smythe Company decides to sell Division F (a component of the company). On December 31, 2016, the company classifies Division F as held for sale. On that date, the book values of Division F's assets and liabilities are $960,000 and $600,000, respectively. Smythe expects to sell Division F in 2017 and estimates that the fair value of Division F is $260,000. During 2016, Division F earned revenues of $1,000,000 and incurred expenses of $1,500,000. Smythe is subject to a 30% income tax rate. Required: 1. Compute the following for Division F of Smythe Company: a) Pretax income or loss from discontinued operations b) Income tax expense or credit for discontinued operations c) After tax income or loss from discontinued operations d) Pretax income or loss on write-down of Division F held-forsale e) Income tax expense or credit for write-down of Division F held-for-sale f) After tax income or loss on write-down of Division F held-forsale 2. Prepare the results from discontinued operations section of Smythe income statement for 2016. Results from discontinued operations: from operations of discontinued Division F on write-down of held-for-sale Division F Total Statement of Cash Flows The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016: a. Net income, $51,100 b. Payment of dividends, $15,200 c. Ten-year, $38,900 bonds payable were issued at face value d. Depreciation expense, $12,000 F. Building acquired at a cost of $33,300 f. Accounts receivable decreased by $4,000 g. Accounts payable decreased by $4,100 h. Equipment acquired at a cost of $6,400 i. Inventories increased by $6,500 j. Beginning cash balance, $24,100 Required: Prepare Rocky Horror Picture's statement of cash flows for 2016 using the indirect method. Use a minus sign for any negative amounts

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