Dangerous Mix Inc. adopted a formal plan to sell the division. The sale was completed on April
Question:
Dangerous Mix Inc. adopted a formal plan to sell the division. The sale was completed on April 30, 2019. On December 21, 2019, the component was sold for $150,000. On the date of sale, the book value of the assets of the pesticides division $400,000. The before-tax loss from operations of the division for the year was $200,000. The company's effective tax rate is 50%. The income from continuing operations before income tax (excluding restructuring costs as a result of the discontinued component) for 2019 was $1,000,000. The company incurred restructuring costs of $100,000 as a result of the retirement of the discontinued component.
Beginning with a corrected income from continuing operations before income tax, provide the rest of the Income statement, ending with the net income of the firm.
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield