Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP.. The book value of the assets

image text in transcribed

The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP.. The book value of the assets of the segment was $10 million. The loss from operations of the segment during 2021 was $3.5 million. Pretax income from continuing operations for the year totaled $7.1 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $12 million. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.) CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations before income taxes Income tax expense $ 7,100,000 (1,775,000) Income from continuing operations Discontinued operations: Income tax benefit Loss from operations of discontinued component Income (loss) on discontinued operations Net income (loss) $ 5,325,000 875,000 (3,500,000) 4,375,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: David Spiceland

11th Edition

1264134525, 9781264134526

More Books

Students also viewed these Accounting questions

Question

Define critical thinking and list its seven standards.

Answered: 1 week ago