Question Details

(solution) Problem 13-6AA Income statement computations and format LO A2



Problem 13-6AA Income statement computations and format LO A2

[The following information applies to the questions displayed below.]


Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year end December 31, 2013, follow.


    Debit Credit
 a. Interest revenue           $ 14,600  
 b. Depreciation expense?Equipment.   $ 34,600          
 c. Loss on sale of equipment     26,450          
 d. Accounts payable             44,600  
 e. Other operating expenses     107,000          
 f. Accumulated depreciation?Equipment             72,200  
 g. Gain from settlement of lawsuit             44,600  
 h. Accumulated depreciation?Buildings             175,700  
 i. Loss from operating a discontinued segment (pretax)     18,850          
 j. Gain on insurance recovery of tornado damage (pretax and extraordinary)             29,720  
 k. Net sales             1,004,500  
 l. Depreciation expense?Buildings     52,600          
 m. Correction of overstatement of prior year?s sales (pretax)     16,600          
 n. Gain on sale of discontinued segment?s assets (pretax)             37,000  
 o. Loss from settlement of lawsuit     24,350          
 p. Income taxes expense               ?          
 q. Cost of goods sold     488,500          

Problem 13-6AA Part 1

Required:
1.

Assume that the company?s income tax rate is 30% for all items. Compute the tax effects and after-tax amounts of the four items labeled pretax. (Loss amounts should be indicated with a minus sign.)

 

                                                                                                  30%  Tax

                                                                                           Pretax     |   Effect            |  After-Tax

Loss from operating a discontinued segment  _______________|______________ |______________________

Gain on insurance recovery of tornado damage  ____________|_______________|____________________

Correction of overstatement of prior year's sales____________|______________|____________________

Gain on sale of discontinued segment's assets______________ |______________|_________________________


Problem 13-6AA Part 2

2.1

What is the amount of income from continuing operations before income taxes?

Income from continuing operations before taxes.___________________



2.2   What is the amount of the income taxes expense?

Income taxes expense._____________________


2.3

What is the amount of income from continuing operations?

Income from continuing operations after taxes.________________

Problem 13-6AA Part 3

3. What is the total amount of after-tax income (loss) associated with the discontinued segment?

After-tax income from discontinued segment.______________________



Problem 13-6AA Part 4

4.  What is the amount of income (loss) before the extraordinary items?

Income before extraordinary items.________________


Problem 13-6AA Part 5

5.

What is the amount of net income for the year?

Net income.____________________




 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Jan 30, 2021

PRICE: $15

Solution~0001017525.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Jan 30, 2021

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now