xf FacebookxG planet finess x Chapter 4 Hom x Secure https://newconnect.mheducat

Question

xf FacebookxG planet finess x Chapter 4 Hom x Secure https://newconnect.mheducation.com/flow/connect.html 4 Homework 1 Saved Help Save & Exit Submit Check my work On December 31, 2018, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $17 million. The business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $19 million. The loss from operations of the segment during 2018 was $3.30 million. Pretax income from continuing operations for the year totaled $6.10 million. The income tax rate is 40%. Prepare the lower portion of the 2018 income statement beginning with pretax income from continuing operations. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicate es with a minus sign. Enter your answers in whole dollars.) CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2018 Income from continuing operations before income taxes 0 Discontinued operations Prey 1of3H: Next > e here to search F1 F5 F6

Explanation / Answer

CALIFORNIA MICROTECH CORPORATION

Partial Income Statement

For the year ended December 31, 2018

Income from continuing operations before income taxes

$6100000

Income tax expenses @ 40%

($2440000)

Income from continuing operations

$3660000

Discontinued operations;

Loss from operations of discontinued components

($5300000)

Income tax benefits @ 40%

$2120000

Net loss from discontinued operations

($3180000)

Net income

$480000

Working note;

1. Loss from operations of discontinued components will be calculated as follow;

Loss on sale of semiconductor business ($17 - $19)

($2000000)

Loss from operations

($3300000)

Total before tax losses

($5300000)

CALIFORNIA MICROTECH CORPORATION

Partial Income Statement

For the year ended December 31, 2018

Income from continuing operations before income taxes

$6100000

Income tax expenses @ 40%

($2440000)

Income from continuing operations

$3660000

Discontinued operations;

Loss from operations of discontinued components

($5300000)

Income tax benefits @ 40%

$2120000

Net loss from discontinued operations

($3180000)

Net income

$480000

Related Questions

Navigate

• Browse (All)
• Browse X
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.