Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions
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Question:
Chance 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 the company adopted a plan to sell the assets of the division.
Consider the following:
The actual sale was completed on December at a price of $ The book value of the divisions assets was $ resulting in a beforetax loss of $550 on the sale.
The division incurred a beforetax operating loss from operations of $ from the beginning of the year through December
Chances aftertax income from its continuing operations is $
The income tax rate is
Required:
Prepare an income statement beginning with income from continuing operations. Include appropriate EPS disclosures assuming that shares of common stock were outstanding throughout the year.
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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