The following information applies to the questions displayed below. Selected acc
ID: 2525613 • Letter: T
Question
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, 2017, follow Debit Credit $ 14,200 a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado damage k. Net sales 1. Depreciation expense-Buildings m. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit p. Income taxes expense q. Cost of goods sold S 34,200 26,050 44,200 106,600 71,800 44,200 174,900 18,450 29,320 1,000,500 52,200 16,200 23,950 484,500 35,000 Problem 17-6 Part 3 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? er-tax income from discontinued segmentExplanation / Answer
Loss from operating a discontinued segment (pretax)=18,450
Gain on sale of discontinued segments assets (pretax) =35,000
Loss from operating a discontinued segment (after tax)=18,450-18450*30/100=18450-5535=12915
Gain on sale of discontinued segments assets (aftertax) =35,000-35000*30/100=35000-10500=24500
The total amount of after-tax income (loss) associated with the discontinued segment=24500-12915=11585
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