1. Cho, Inc. has the following items: loss on discontinued operations ($400K), loss on disposal of discontinued operations ($250K), tax rate (20%). If the above items are pre-tax dollar amounts, what combined amount (one number) will be reported in the income statement for discontinued items, net of tax?

2. For #1, if the above items are post-tax dollar amounts, what combined amount (one number) will be reported in the income statement for discontinued items, net of tax?

3. For #1, if the loss on discontinued operations is again instead, and the loss on disposal of continued operations remains the same, what combined amount (one number) will be reported in the income statement for discontinued items, net of tax (assuming both the items are pre-tax dollar amounts)?

4. Cho, Inc. has the following items: operating income ($875K), Interest Revenue ($20K), Interest Expense ($40K), Loss on sale of equipment ($35K), Loss on disposal of discontinued items ($230K), gain on discontinued operations ($275K), and tax rate (30%). Assuming all items are pre-tax dollars, what is earnings before income taxes?

5. For #4, what is Tax Expense?

6. For #4, what combined amount (one number) will be reported in the income statement for discontinued items, net of tax?

7. For #4, what is net income?

8. Cho, Inc. borrows $25,000 on May 1, signing a 1-year, 6% note. Assuming Cho makes adjusting entries annually, which account is the debit in the December 31 adjusting entry?

9. For #8, what is the dollar amount of the journal entry?

10. For #8, assuming Cho uses reversing entries, which account is the debit in the January 1 adjusting entry?

Answer rating: 100% (QA)

1 The combined amount for discontinued items net of tax would be 700000 2 The combined amount for discontinued items net of tax would be 1000000 3 The ... View the full answer