QUESTION 1 Partially correct 0.40 points out of 2.00 P Flag question Fi Income S

Question

QUESTION 1 Partially correct 0.40 points out of 2.00 P Flag question Fi Income Statement Sections During the current year, Dale Corporation sold a segment of its business at a gain of $210,000. Until it was sold, the segment had a current period operating loss of $75,000. The company had $850,000 income from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $850,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 35 percent income tax rate. Disregard earnings per share disclosures. Income from Continuing Operations 552,500 × Discontinued Operations Loss from operations of discontinued segment (48,750) x Gain on disposal of discontinued segment 136,500 87,500x $ 640,250 X Net Income Check You have correctly selected 1 Partially correct Marks for this submission: 0.40/2.00.

Explanation / Answer

Income from continuing operations $850,000 Discontinued operations: Loss from operations of discontinued segment (75,000*(1-0.35)) $48,750 Gain on disposal of discontinued segment (210,000*(1-0.35)) $136,500 $87,750 Net income $937,750

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