Question
Terwilliger Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1,
Terwilliger Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2017. The 2017 operating results for the company were as follows.
Operating revenues | $12,850,000 | |
Operating expenses | 8,700,000 | |
Operating income | $ 4,150,000 |
Analysis discloses that these data include the operating results of the hotel chain, which were operating revenues $1,500,000 and operating expenses $2,400,000. The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results. During the year, Terwilliger had an unrealized loss on its available-for-sale securities of $600,000 before taxes, which is not included in the operating results. In 2017, the company had other revenues and gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket. Can you fill out the parts that I got wrong? thank you
TERWILLIGER CORPORATION Statement of Comprehensive Income Operating Revenues 11350000 Operating Expenses 6300000 Income Before Income Taxes 5050000 Other Revenues and Gains 100000 Income From Continuing Operations 5150000 Income Tax Expense -1545000 X Loss from Operations of Hotel Chain 3605000 Income From Operations -490,000 Gain on Sale of Hotels Net Income (Loss) 3115000 2,625,000 Comprehensive Income (Loss) -420,000 Unrealized Loss X 2695000 Total RevenuesStep by Step Solution
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