Question
Rythyms Inc. committed to sell a division on March 22, 2018. It sold the division on June 14, 2020. Income from operating this division was
Rythyms Inc. committed to sell a division on March 22, 2018. It sold the division on June 14, 2020. Income from operating this division was $3,210,000, $1,031,000, and $304,000 in 2018, 2019 and 2020, respectively. On December 31, 2018, the carrying value of the division was $9,840,000 and the fair value was $9,740,000. On December 31, 2019, the fair value of the division was $10,440,000 and the carrying value of the division was $9,840,000. The division was sold for $9,600,000 when the carrying value was $9,840,000. Prepare the discontinued operations section of the income statement for 2018 through 2020, assuming Rhythms' income tax rate is 30%.
(Use parentheses or a minus sign to enter any loss amount. If a box is not used in the table, leave the box empty; do not select a label or enter a zero.)
Brass, Inc. committed to sell a division on March 22, 2018. It sold the division on June 14, 2020. Income from operating this division was $3,340,000, $1,050,000, and $395,000 in 2018, 2019 and 2020, respectively. On December 31, 2018, the carrying value of the division was $9,920,000 and the fair value was $9,720,000. On December 31, 2019, the fair value of the division was $10,470,000 and the carrying value of the division was $9.920,000. The division was sold for $9,700,000 when the carrying value was $9.920,000. Prepare the discontinued operations section of the income statement for 2018 through 2020, assuming Brass' income tax rate is 20%. (Use parentheses or a minus sign to enter any loss amount If a box is not used in the table, leave the box empty; do not select a label or enter a zero.) Brass, Inc. Partial Income Statement For the Year Ended December 31 2018 2019 2020 Income from Discontinued Operations IBS Brass, Inc. Partial Income Statement For the Year Ended December 31 2018 2019 2020 Discontinued Operations Gross Profit Income From Continuing Operations Income From Continuing Operations Before Tax Operating Expenses: Operating Income Total Operating Expenses Cost of Goods Sold Depreciation and Amortization Expense Dividend Income i Gain from Disposition, Net of Tax Income from Operations, Net of Tax Income Tax Expense Loss on Disposition, Net of Tax Other Revenues and Expenses Unrealized Gain (Loss) on Remeasurement of Net Assets, Net of Tax Income from Discontinued OperationsStep by Step Solution
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