Liz Claiborne Inc. reported $ 145 million of Income from Operations for its year ended December 31,
Question:
Juicy Couture brand impairment loss…………. $ 1.7 million
TRIFARI brand impairment loss……………….. 3.3 million
Mexx impairment loss………………………….. 6.1 million
Total impairment losses……………………... $ 11.1 million
(a) Determine the gain on sale that Liz Claiborne reported in 2011 when it disposed of its brand names.
(b) What would have been the company’s Income (Loss) from Operations for this year had it not sold its Liz Claiborne brand names?
(c) Determine the Income from Operations that Fifth & Pacific would have reported in 2013 had its impairment losses been zero.
(d) What percentage of operating income (before impairment) did the 2013 impairment losses represent?
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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