On October 5, 2023, Diamond in the Briclgeport Recruiting Group Inc.'s board of Directors decided to dispose
Question:
On October 5, 2023, Diamond in the Briclgeport Recruiting Group Inc.'s board of Directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately 73% of its income from its human resources management practice. The Blue Division gets contracts to perform human resources management on an outsourced basis. The board decided to dispose of the division because of unfavorable operating results.
Net income for diamond was $ 93,450 for the fascial year ended December 31, 2023 (after a charge for tax at 30% and after a writhed for blue assets). Income from operations of the Blue Division accounted for $ 5,250 (after tax) of this amount. Because of the unfavorable results and extremes competition, the board believes that it can not sell the business intact. Its final decision is to auction off the office equipment is the division's only asset and has carrying value of $ 24,000 at October 5, 2023 . The board believes the proceeds from the sale will be approximately $ 4,000 after the auction expenses. currently, the equipment's estimated fair value is $ 6400. The Blue Division qualifies for treatment as a discontinue operation.
Diamond prepares financial in accordance with ASPE.
Prepare a partial Income statement for diamond in the blue spruce recruiting group. This income statement should begin with income from continuing operations before income tax.
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,