The following is the adjusted trial balance for the Woodbine Circle Corporation on December 31, 2007: Other
Question:
Other financial data for the year ended December 31, 2007:
Federal Income Taxes________________________
Paid on Federal Tax Deposit Form ........ $700,000
Accrued ....................... 200,000
Total charged to income tax expense (estimated) .... $900,000
Tax rate on all types of taxable income ....... 40%
Discontinued Operations _______________________
On September 30, 2007 Woodbine sold its Auto Leasing (AL) Division for $4,000,000. The book value of this division was $4,250,000 at that date. For financial statement purposes, this sale was considered as discontinued operation of a component of the company.
Capital Structure____________________________
Common stock, par value $1 per share, traded on the New York Stock Exchange:
Number of shares outstanding during all of 2007 1,000,000
Required
Using the multiple-step format, prepare a formal income statement for Woodbine for the year ended December 31, 2007, together with the appropriate supporting schedules. All income taxes should be appropriatelyshown.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones