Answer the following question: Part A: Abruzzese Inc. reported the following results of its operations...
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Accounting
Answer the following question:
Part A:
Abruzzese Inc. reported the following results of its operations for 2019:
Income from discontinued operations $9000
Net Income $32600
Income tax rate 40%
Income from continuing operations was:
a) $14,140
b) $27,200
c) $41,600
d) $23,600
e) $32,600
Part B:
Orlov Co. owns a truck with a cost of $120,000 and accumulated depreciation of $60,000. The market value of this truck is $70,000. Orlov Co. traded in the truck to a dealership and paid $20,000 cash. In exchange, Orlov Co. obtained a truck that performs the same services as the old truck but will bring in more revenue due to its efficiency. The truck acquired has a list price of $95,000. The new asset received should be recorded at what value?
a) Fair market value of new truck plus cash paid
b) Old book value less accumulated depreciation plus cash paid
c) Fair market value of old truck less cash paid
d) Old book value less accumulated depreciation less cash paid
e) None of these answers is correct
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