PROBLEM 2Riverside Records is currently preparing year-end financial statements for December 31, 2021.Additionally, you have been tasked to construct the income statement for Riverside Records.Selected pretax information is below.Operating expenses$3,000,000Inventory on 12/31/211,700,000Sales revenue6,700,000Gain on sale of discontinued operation 500,000Operating loss of discontinued70,000operationPurchases of inventory3,000,000Inventory 1/1/211,300,000Additional information indicates the discontinued operation was sold on November 29, 2021. Theentity's board decided to sell the division and developed a formal plan to do so on January 15, 2021.To plan future operations in case the division did not sell by year end, on August 7, 2021, RiversideRecords evaluated the fair value of the discontinued component at $700,000 and the net book valueto be $300,000.Required:Prepare in multiple-step form, the income statement for Riverside Records for December 31, 2021.Use a 30% tax rate,

Name: PROBLEM 2Riverside Records is currently preparing year-end financial
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Description: PROBLEM 2Riverside Records is currently preparing year-end financial statements for December 31, 2021.Additionally, you have been tasked to construct the income statement for Riverside Records.Selected pretax information is below.Operating expenses$

A multi-step income statement categorizes total revenue and expenses as operating and non-operating.…

Business

Accounting

Riverside Records is currently preparing year-end financial stater Additionally, you have been tasked to construct the income state Selected pretax information is below. Operating expenses $3,000,000 Inventory on 12/31/21 1,700,000 Sales revenue 6,700,000

Riverside Records is currently preparing year-end financial stater Additionally, you have been tasked to construct the income state Selected pretax information is below. Operating expenses $3,000,000 Inventory on 12/31/21 1,700,000 Sales revenue 6,700,000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 28E

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