I got the income tax expense wrong. How can I calculate this ? I want to learn the correct way please. Exercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring costs [LO4-1,4-3, 4-4]Esquire Comic Book Company had income before tax of $1,350,000 in 2021 before considering the following material items:1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accountingprinciples. The before-tax loss on disposal was $375,000. The division generated before-tax income from operations from thebeginning of the year through disposal of $570,000.2. The company incurred restructuring costs of $90,000 during the year.Required:Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%.Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)ESQUIRE COMIC BOOK COMPANYPartial Income StatementFor the Year Ended December 31, 2021$945,000Income from continuing operationsDiscontinued operations:Income from operations of discontinued component195,000Income tax expense48,750 X243,750Income (loss) on discontinued operationsNet income (loss)$ 1,091,250* Red text indicates no response was expected in a cell or a formula-based calculation is incorrect: no points deducted.

A partial income statement only shows data for a portion of a normal accounting period. This is…

xercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring -3, 4-4] squire Comic Book Company had income before tax of $1,350,000 in 2021 before considering the following materi . Esquire sold one of its operating divisions, which qualified as a separate component according to generally accep principles. The before-tax loss on disposal was $375,000. The division generated before-tax income from operati beginning of the year through disposal of $570,000. . The company incurred restructuring costs of $90,000 during the year. equired: repare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income gnore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

xercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring -3, 4-4] squire Comic Book Company had income before tax of $1,350,000 in 2021 before considering the following materi . Esquire sold one of its operating divisions, which qualified as a separate component according to generally accep principles. The before-tax loss on disposal was $375,000. The division generated before-tax income from operati beginning of the year through disposal of $570,000. . The company incurred restructuring costs of $90,000 during the year. equired: repare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income gnore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1P

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Exercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring costs [LO4-1, 4-3, 4-4] Esquire Comic Book Company had income before tax of $1,900,000 in 2021 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $430,000. The division generated before-tax income from operations from the beginning of the year through disposal of $680,000. 2. The company incurred restructuring costs of $95,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: Answer is not…
9. Esquire Comic Book Company had income before tax of $1,600,000 in 2021 before considering the following material items: Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $400,000. The division generated before-tax income from operations from the beginning of the year through disposal of $620,000. The company incurred restructuring costs of $65,000 during the year. Required:Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)
Esquire Comic Book Company had income before tax of $1,000,000 in 2021 before considering the following material items:1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $340,000. The division generated before-tax income from operations from the beginning of the year through disposal of $500,000.2. The company incurred restructuring costs of $80,000 during the year. Required:Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures.
Exercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring costs [LO4-1, 4-3, 4-4] Esquire Comic Book Company had income before tax of $1,900,000 in 2021 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $430,000. The division generated before-tax income from operations from the beginning of the year through disposal of $680,000. 2. The company incurred restructuring costs of $95,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued…
Esquire Comic Book Company had income before tax of $1,000,000 in 2021 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $340,000. The division generated before-tax income from operations from the beginning of the year through disposal of $500,000. 2. The company incurred restructuring costs of $80,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: Income from operations of discontinued component Income tax expense Net income (loss) 0
Esquire Comic Book Company had income before tax of $1,250,000 in 2024 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accountin principles. The before-tax loss on disposal was $365,000. The division generated before-tax income from operations from the beginning of the year through disposal of $550,000. 2. The company incurred restructuring costs of $80,000 during the year. Required: Prepare the income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25% Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign. ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations Discontinued operations. Gain on sale of assets Income from operations of discontinued component Income tax benefit. Income tax expense
Heavenly Taft, Inc. sold a division of its company during the year for a $400,000 gain. Prior to the date of sale, the year-to-date net loss for the division was A $1,000,000. The company's tax rate is 30%. What will be reported on the income statement as a "special item?" O $420,000 loss O $1,000,000 discontinued operation loss less a $300,000 tax savings O $400,00 gain less $120,000 income tax O Both B and C
4. Enron Company decided on August 1, 2011 to dispose of a component of its business. The component was sold on November 30, 2011. Enron's income for 2011 included income of P5,000,000 from operating the discontinued segment from January 1 to the sale date. Enron incurred a loss on the November 30 sale of P4,500,000. Ignoring income tax, what amount should be reported in the 2011 income statement as income or loss under "discontinued operation"? O a. 4,500,000 loss O b. 5,000,000 income O c. 500,000 loss O d. 500,000 income
19. In ABC Food Co.'s 2023 single-step income statement, the section titled "Revenues" consisted of the following: Net sales revenue Results from discontinued operations: Loss from discontinued component Z including loss on disposal of P1,200 Less: Tax benefit Interest revenue Gain on sale of equipment Cumulative change in 2021 and 2022 income due to change in depreciation method (net of P750 tax effect) Total revenues 16,400 4,000 187,000 (12,400) 10,200 4,700 1,500 191,000 In the revenues section of the 2023 income statement, how much total revenue should ABC Food report?
Esquire Comic Book Company had income before tax of $1,000,000 in 2018 before considering the followingmaterial items:1. Esquire sold one of its operating divisions, which qualified as a separate component according to generallyaccepted accounting principles. The before-tax loss on disposal was $350,000. The division generated beforetax income from operations from the beginning of the year through disposal of $500,000. Neither the loss ondisposal nor the operating income is included in the $1,000,000 before-tax income the company generatedfrom its other divisions.2. The company incurred restructuring costs of $80,000 during the year.Required:Prepare a 2018 income statement for Esquire beginning with income from continuing operations. Assume anincome tax rate of 40%. Ignore EPS disclosures
1 Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a S200000 loss in the year of disposal. The loss on disposal of the segment was $100000. If the tax rate is 30%, and income before income taxes was S1600000, a the losses from discontinued operations are reported net of income taxes at $300000. the income tax expense on the income before discontinued operations is $390000. c the income from continuing operations is $1120000. d net income is $1300000.
4. What amount should be reported as loss from discontinued operation in 2021? * Problem B. On December 31, 2021, Max Company committed to a plan to discontinue the operations of Underwear Division. The fair value of the facilities was P1,000,000 less than carrying amount on December 31, 2021. The division's operating loss for 2021 was P2,000,000 and the division was actually sold for P1,200,000 less than the carrying amount in 2022. The entity estimated that the division's operating loss for 2022 would be P500,000. The income tax rate is 30%. 4. What amount should be reported as loss from discontinued operation in 2021?