On May 1, 2015, Bradley Corporation decided to sell one of its components that qualified as...
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On May 1, 2015, Bradley Corporation decided to sell one of its components that qualified as a discontinued operation. This component had an operating loss of $75,000 during 2015. At December 31, 2015, Bradley's year-end, it estimated the Component's fair value to be $500,000 and its net book value to be $480,000. Bradley also estimated the disposal costs would be $70,000. The sale of the component was completed on March 1, 2016 for cash proceeds of $440,000. The component had an operating loss of $21,000 during the first two months of 2016. Assume that all the amounts are pre-tax and that Bradley's tax rate for both 2015 and 2016 was 35%. For your answers, if there is a Loss, indicate using parenthesis (). a. Determine the Results of Discontinued Operations (net of tax)* as of December 31, 2015: $ *This answer should include BOTH the Income/Loss from Disc. Operations for '15 as well as the impairment loss, if any. b. For 2016, determine the following: Discontinued Operations (Note 17): Income/Loss from Operations of Discontinued Operations (net of tax) Gain/Loss on Disposal of Discontinued Operations (net of tax) Results of Discontinued Operations (net of tax) tA $ tA On May 1, 2015, Bradley Corporation decided to sell one of its components that qualified as a discontinued operation. This component had an operating loss of $75,000 during 2015. At December 31, 2015, Bradley's year-end, it estimated the Component's fair value to be $500,000 and its net book value to be $480,000. Bradley also estimated the disposal costs would be $70,000. The sale of the component was completed on March 1, 2016 for cash proceeds of $440,000. The component had an operating loss of $21,000 during the first two months of 2016. Assume that all the amounts are pre-tax and that Bradley's tax rate for both 2015 and 2016 was 35%. For your answers, if there is a Loss, indicate using parenthesis (). a. Determine the Results of Discontinued Operations (net of tax)* as of December 31, 2015: $ *This answer should include BOTH the Income/Loss from Disc. Operations for '15 as well as the impairment loss, if any. b. For 2016, determine the following: Discontinued Operations (Note 17): Income/Loss from Operations of Discontinued Operations (net of tax) Gain/Loss on Disposal of Discontinued Operations (net of tax) Results of Discontinued Operations (net of tax) tA $ tA
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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,
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