Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Our Q&A platform provides quick and trustworthy answers to your questions from experienced professionals in different areas of expertise. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Esquire Comic Book Company had income before tax of $1,800,000 in 2021 before considering the following material items:
1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $420,000. The division generated before-tax income from operations from the beginning of the year through disposal of $660,000.
2. The company incurred restructuring costs of $85,000 during the year.
Required:
Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25% Ignore EPS disclosures.

Sagot :

jepessoa

Answer:

Esquire Comic Book Company

Partial Income Statement

For the year ended December 31, 2021

Income from continuing operations                            $1,800,000

Income tax expense                                                         ($450,000)

Net income from continuing operations                         $1,350,000

Discontinued operations Gain/Loss

    Loss from disposal                                 ($420,000)

    Income from discontinued operations   $660,000

    Income taxes                                            ($60,000)     $180,000

Net income                                                                       $1,530,000

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.