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In: Accounting1. On November 30, 2017, Rocky Co. decided to dispose of acomponent A. The sale...1. On November 30, 2017, Rocky Co. decided to dispose of acomponent A. The sale was not completeat the end of 2017. During 2017, this component generatedoperating income of $200,000. Thehistorical cost of component A is $1,200,000 and the AccumulatedDepreciation for component A onDecember 31, 2017 was $500,000. At December 31, 2017, the fairvalue of component A wasestimated at $710,000 and the cost to sell component A wasestimated to be $50,000. Rocky has a30% tax rate in all years.a) Provide the journal entry to record any impairment ofComponent A in 2017.b) Provide the Discontinued Operations Section of the 2017Multistep Income Statement.Rocky Co. sold component A on May 17, 2018 for a sales price of$735,000 with sales commissionsof $45,000. During 2018, component A generated operating incomeof $100,000. Rocky’s commonshares outstanding at the end of 2017 and 2018 were 500,000 and700,000 shares, respectively. In2018, Rocky declared a preferred stock dividend of $30,000, butonly paid $24,000 of the dividend in2018. In 2018, Rocky declared a common stock dividend of $60,000and only paid $40,000.c) Provide the 2018 Partial Income Statement, starting withIncome from Continuing OperationsBefore Taxes of $900,000. Include the first four lines and EPSinformation. Good format isrequired.d) Provide the journal entry to record the disposal of ComponentA. GJEF is required.