Desert Company decided in 2021 to dispose of their Ocotillo Division. The sale will not be...
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Desert Company decided in 2021 to dispose of their Ocotillo Division. The sale will not be completed until 2022. During 2021, the Ocotillo Division reported a loss on operations of $41,836. The carrying value of the Ocotillo Division at December 31, 2021, is $416,304. The fair value of the division is estimated to be $548,105 and estimated selling costs are $20,537. Desert has calculated Income from Continuing Operations to be $850,000. Assume a 30% tax rate. What is the amount of net income Desert will report on its year-end 2021 income statement? Desert Company decided in 2021 to dispose of their Ocotillo Division. The sale will not be completed until 2022. During 2021, the Ocotillo Division reported a loss on operations of $41,836. The carrying value of the Ocotillo Division at December 31, 2021, is $416,304. The fair value of the division is estimated to be $548,105 and estimated selling costs are $20,537. Desert has calculated Income from Continuing Operations to be $850,000. Assume a 30% tax rate. What is the amount of net income Desert will report on its year-end 2021 income statement?
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Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
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