On October 1 of the current year, Blain Company approved a formal plan to sell the McKay
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On October of the current year, Blain Company approved a formal plan to sell the McKay Division, considered a component of the business. The sale will occur on March of the following year. The division had operating income of $pretax for the year ended December but expects to incur an operating loss of $ for the first quarter of next year. Blain determines the carrying value and fair value net of selling costs of the McKay Division to be $ and $ respectively, on December Blains tax rate for the year is Weighted average number of common shares outstanding in the current year is
Required
a Assume Blain Companys income from continuing operations is $after tax in the current year. Prepare a partial income statement beginning with income from continuing operations. Include earnings per share disclosures.
Use a negative sign to indicate a loss.
Enter the answers for per share amounts in dollars and cents, rounded to the nearest penny.
Answer
Income from continuing operations
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Discontinued operations
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Income from discontinued component, net of tax
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Impairment loss on discontinued component, net of tax savings
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Answer
Net income
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Per share:
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Income from continuing operations
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Income from discontinued component, net of tax
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Impairment loss on discontinued, component, net of tax savings
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Net income
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b How does the answer to part a change if the fair value of the McKay Divisions net assets were $ instead of $ on December
Use a negative sign to indicate a loss.
Enter the answers for per share amounts in dollars and cents, rounded to the nearest penny.
Answer
Income from continuing operations
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Discontinued operations
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Income from discontinued component, net of tax
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Impairment loss on discontinued component, net of tax savings
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Answer
Net income
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Per share:
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Income from continuing operations
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Gain on disposal of discontinued component, net of tax
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Impairment loss on discontinued, component, net of tax savings
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Answer
Net income
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Answer Blain Company Partial Income Statement a Income from continuing operations 3220000000 Discont... View the full answer
Related Book For 
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
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