Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2017, follow. Debit Credit a. Interest revenue
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2017, follow.
Debit | Credit | ||||||
a. | Interest revenue | $ | 15,600 | ||||
b. | Depreciation expenseEquipment. | $ | 35,600 | ||||
c. | Loss on sale of equipment | 27,450 | |||||
d. | Accounts payable | 45,600 | |||||
e. | Other operating expenses | 108,000 | |||||
f. | Accumulated depreciationEquipment | 73,200 | |||||
g. | Gain from settlement of lawsuit | 45,600 | |||||
h. | Accumulated depreciationBuildings | 177,700 | |||||
i. | Loss from operating a discontinued segment (pretax) | 19,850 | |||||
j. | Gain on insurance recovery of tornado damage | 30,720 | |||||
k. | Net sales | 1,014,500 | |||||
l. | Depreciation expenseBuildings | 53,600 | |||||
m. | Correction of overstatement of prior years sales (pretax) | 17,600 | |||||
n. | Gain on sale of discontinued segments assets (pretax) | 42,000 | |||||
o. | Loss from settlement of lawsuit | 25,350 | |||||
p. | Income taxes expense | ? | |||||
q. | Cost of goods sold | 498,500 | |||||
Required I. Assume that the company's income tax rate is 30% for all items. Compute the tax effects and after-tax amounts of the three items labeled pretax. Answer is complete and correct. 30% Tax Effect Pretax After-Tax 19,850 17,600 2000 (12,600) 29,400 ,95513,895 5 12,320 5,280 Loss from operating a discontinued segment Correction of overstatement of prior year's sales Gain on sale of discontinued segment's assets Complete this question by entering your answers in the tabs below. Req 2A Req 2B Req 2C What is the amount of income from continuing operations before income taxes? Income from continuing operations before taxes! Req 2A e OCHuHuing Complete this question by entering your answers in the Req 2A Req 2B Req 2C What is the amount of the income taxes expense? Income taxes expense Req 2A Complete this question by entering your answers in the tabs below Req 2A Req 2B Req 2C What is the amount of income from continuing operations? Income from continuing operations after taxes Req 2B Req 2C 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? After-tax income from discontinued segment 4. What is the amount of net income for the year? Net income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started