a. What do you understand by allocation to non-controlling interest and discontinued operations? Explain how to report them in the income statement.

Answer:

b. Intraperiod Tax Allocation.

XYZ Co. has income before income tax of SR 50,000. XYZ Co. has a gain of SR 10,000 from a discontinued operation. Assuming a 35 percent income tax rate, how would XYZ Co. present the information on the income statement, and if it has a loss of SR 10,000 from a discontinued operation. Assuming a 35 percent income tax rate, show the changes in Income on the income statement

Prepare:

- Changes in Net Income when Loss made from discontinued operations

- Changes in Net Income when Gain made on discontinued operations