70.2K

Verified Solution

Link Copied!

A company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September $1,2016,$ the company adopted a plan to sell the assets of the division. The actual sale was completed on December $15,2016,$ at a price of $$600,000.$ The book values of the division's assets was $$1,000,000.$ The division incurred a before tax operating loss of $$130,000$ from the beginning of the year through December $15.$ The income tax rate is $40\%.$ The companies after$-$tax income from continuing operations is $$300,000.$NOTE: Do not use commas $(,)$ in numbers nor Dollar signs $($$$).$ Negative numbers should be shown with a negative sign preceding the number. This mean that if you need to report a loss of $$1,000,$ you have to enter $-1000.$The pre$-$tax income from continuing operations for $2016$ was $Answer $1$The amount of tax allocated to income from continuing operations was $Answer $2$The net loss from operations of the discontinued segment as reported on the income statement for the year $2016$ was $Answer $3$The net loss from disposal of the discontinued segment as reported on the income statement for the year $2016$ was $Answer $4$The net Answer $5$ for the year $2016$ was $Answer $6$Assuming that the weighted average number of common shares outstanding was $100,000$ throughout the year, then the company must report EPS from continuing operations as $Answer $7$ per share.Assuming that the weighted average number of common shares outstanding was $100,000$ throughout the year, then the company must report EPS from discontinued operations as $Answer $8$ per share.Assuming that the weighted average number of common shares outstanding was $100,000$ throughout the year, then the company must report EPS from net income as $Answer $9$ per share.

Answer & Explanation Solved by verified expert

See Answer