Selected account balances from the adjusted trial balance for Ollnda Corporation
ID: 2419170 • Letter: S
Question
Selected account balances from the adjusted trial balance for Ollnda Corporation as of its calendar year end December 31. 2015. follow. What is the amount of income from continuing operations before income taxes? What is the amount of the income taxes expense? What is the amount of income from continuing operations? What is the total amount of after-tax income (loss) associated with the discontinued segment? What is the amount of income (loss) before the extraordinary items? What is the amount of net income for the year?Explanation / Answer
Statement showing income from Continued Operations
Particulars
Amount($)
Net Sales
10,13,500
Interest Revenue
15,500
Gain from settlement of Law suits
45,500
10,74,500
Depreciation expense - Equipment
-35,500
Loss on sale of Equipment
-27,350
Other operating Income
-1,07,900
Depreciation expense - Building
-53,500
Correcton of overstatment
-17,500
Loss from settlement of law suits
-25,250
Cost of goods sold
-4,97,500
2.1
1)
Income from continuing operations before Taxes
3,10,000
2)
Tax @ 30%
-93,000
2.3
3)
Income from continuing operations after Taxes
2,17,000
Income/ loss from discontinued operations
Loss from operating a discontinued segment
-19750
Gain on sale of discontinued segment assets
41500
Income from disc operations before tax
21750
Less: Tax @30%
-6525
4)
Income from disc operations After tax
15225
15,225
2.4
Income Before Extraordinary items
2,32,225
5)
Income from Extraordinary items
Insurance
30620
Less: Tax @30%
-9186
21434
21,434
2.5
Net Income
2,53,659
2.2
Tax Expense
1,08,711
Statement showing income from Continued Operations
Particulars
Amount($)
Net Sales
10,13,500
Interest Revenue
15,500
Gain from settlement of Law suits
45,500
10,74,500
Depreciation expense - Equipment
-35,500
Loss on sale of Equipment
-27,350
Other operating Income
-1,07,900
Depreciation expense - Building
-53,500
Correcton of overstatment
-17,500
Loss from settlement of law suits
-25,250
Cost of goods sold
-4,97,500
2.1
1)
Income from continuing operations before Taxes
3,10,000
2)
Tax @ 30%
-93,000
2.3
3)
Income from continuing operations after Taxes
2,17,000
Income/ loss from discontinued operations
Loss from operating a discontinued segment
-19750
Gain on sale of discontinued segment assets
41500
Income from disc operations before tax
21750
Less: Tax @30%
-6525
4)
Income from disc operations After tax
15225
15,225
2.4
Income Before Extraordinary items
2,32,225
5)
Income from Extraordinary items
Insurance
30620
Less: Tax @30%
-9186
21434
21,434
2.5
Net Income
2,53,659
2.2
Tax Expense
1,08,711
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