On December 31, 2021, the companys fiscal year-end, the book value of the assets of the horse
Question:
On December 31, 2021, the company’s fiscal year-end, the book value of the assets of the horse division was $284,000. On that date, the fair value of the assets, less costs to sell, was $240,000. The before-tax loss from operations of the division for the year was $180,000. The company’s effective tax rate is 25%. The after-tax income from continuing operations for 2021 was $440,000.
Required:
Prepare a partial income statement for 2021 beginning with income from continuing operations. Ignore EPS disclosures.
Prepare a partial income statement for 2021 beginning with income from continuing operations. Assume that the estimated net fair value of the horse division’s assets was $480,000, instead of $240,000. Ignore EPS disclosures.
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas