Kandon Enterprises, Inc., has two operating divisions; one manufactures machiner
ID: 2378079 • Letter: K
Question
Kandon Enterprises, Inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and on November 15, 2013, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2014. At December 31, 2013, the component was considered held for sale.
On December 31, 2013, the company
Kandon Enterprises, Inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and on November 15, 2013, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2014. At December 31, 2013, the component was considered held for sale.
Explanation / Answer
1. Income from Continuing Operations... 400,000
Loss from discontinued operations, net of tax...(84,000)
Estimated loss on sale of discontinued operations, net of tax...(30,000)
Net Income.. 286,000
2. Estimated gain on sale of discontinued operations.. 90,000
Net income ..406,000
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