Question
Check my work The following condensed income statements of the Jackson Holding Company are presented for...
Check my work The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2021 and 2020: points Sales revenue cost of goods sold Gross profit Operating expenses Operating income Gain on sale of division 2021 2020 $15,400,000 $10,000,000 9.400,000 5,200,000 6,000,000 3,000,000 3,360,000 2.760,000 2.640,000 1,040,000 640,000 3,280,000 1,040,000 820, 000 2 60,000 $ 2,460,000 5 780,000 Income tax expense Net income Reference On October 15, 2021, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualities as a component of an entity as defined by GAAP. The division was sold on December 31, 2021, for $5,120,000. Book value of the division's assets was $4,480,000. The division's contribution to Jackson's operating income before tax for each year was as follows: 2021 2020 $420,000 $320,000 Assume an income tax rate of 25% Required: (In each case, net any gain or loss on sale of division with annual income or loss from the division and show the tax effect on a separate line.) 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing
points Required: (in each case, net any gain or loss on sale of division with annual income or loss from the division and show the tax effect on a separate line.) 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. 2. Assume that by December 31, 2021, the division had not yet been sold but was considered held for sale. The fair value of the division's assets on December 31 was $5,120,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. 3. Assume that by December 31, 2021, the division had not yet been sold but was considered held for sale. The fair value of the division's assets on December 31 was $3,940,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. ebook Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) JACKSON HOLDING COMPANY Comparative Income Statements (in part) For the Years Ended December 31
Required 1 Required 2 Required 3 Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) ances JACKSON HOLDING COMPANY Comparative Income Statements (in part) For the Years Ended December 31 2021 Income from continuing operations before income taxes $ 2,220,000 Income tax benefit (expense) 2020 720,000 $ 2,220,000 720,000 Income from continuing operations Discontinued operations gain (loss): Income (loss) from operations of discontinued component Income tax benefit (expense) Income from discontinued operations Net income 00 2.220,000 $ 720,000 $
Answers
1)
Jackson Holding Company Comparative Income Statement (in Part) For the Year Ended December 31 2021 2020 Income from Continuing Operations before Income taxes $22,20,000 $7,20,000 Income Tax Benifit (Expense) (25%) ($5,55,000) ($1,80,000) Income from Continuing Operations $16,65,000 $5,40,000 Discontinuing Operations Income (loss) from operations of discontinued component $4,20,000 $3,20,000 Income Tax Benifit (Expense) ($1,05,000) ($80,000) Gain on Sale of Discontinued Operation s (Net off Taxes) $4,80,000 Income from Discontinuing Operations $7,95,000 $2,40,000 Net Income $24,60,000 $7,80,000 Note :
Income from Continuing Operations:
Particulars 2021 2020 Total Operating Income $26,40,000 $10,40,000 Operating Income from discontinuing Operations ($4,20,000) ($3,20,000) Income from Continuing Operations $22,20,000 $7,20,000 2)
Jackson Holding Company Comparitive Income Statement (in Part) For the Year Ended December 31 2021 2020 Operating Income $26,40,000 $10,40,000 Fair Value gain on Assets held for sale $6,40,000 $32,80,000 $10,40,000 Income Tax Benifit (Expense) (25%) ($8,20,000) ($2,60,000) Net Income $41,00,000 $13,00,000
Fair Value gain on Assets held for sale Particulars Amount Fair Value of Division $51,20,000 Book Value of Division $44,80,000 Fair Value gain on Assets held for sale $6,40,000 3)
Jackson Holding Company Comparative Income Statement (in Part) For the Year Ended December 31 2021 2020 Operating Income $26,40,000 $10,40,000 Fair Value loss on Assets held for sale ($5,40,000) $21,00,000 $10,40,000 Income Tax Benifit (Expense) (25%) ($5,25,000) ($2,60,000) Net Income $26,25,000 $13,00,000 Fair Value loss on Assets held for sale Particulars Amount Fair Value of Divisinon $39,40,000 Book Value of Division $44,80,000 Fair Value gain on Assets held for sale ($5,40,000)
Similar Solved Questions
1 answers
Which causes winter snow and summer rain at higher latitude
which causes winter snow and summer rain at higher latitude?...
1 answers
How long does it take for a deposit of $1400 to double at 10% compounded continuously
How long does it take for a deposit of $1400 to double at 10% compounded continuously?...
1 answers
16. Based on the Relative Risk Aversion (RR) and CRRA utility function (with y 1) and...
16. Based on the Relative Risk Aversion (RR) and CRRA utility function (with y 1) and the odds result: 1 0 70(,0) = 5 +7 a. What is the coefficient of risk aversion (Y) that makes roy, 0)=1, when y=100 and 0 =0.50? b. What is the coefficient of risk aversion (Y) that makes moy, 0)=1, when y=100 and ...
1 answers
What best explains the recent expansion of ultra-processed foods? a. shelf-life and taste b. convenience c....
What best explains the recent expansion of ultra-processed foods? a. shelf-life and taste b. convenience c. price d. shelf-life and taste, convenience, and price...
1 answers
Which of the following is one of the numerous purposes fulfilled by the law? Multiple Choice...
Which of the following is one of the numerous purposes fulfilled by the law? Multiple Choice Discouraging social justice Limiting personal freedoms Serving as a moral guide by indicating maximum expectations of citizens and organizations Providing order such that one can depend on a promise or an ex...
1 answers
How do you write the expression #(y-3)(y-3)(y-3)# using exponents?
How do you write the expression #(y-3)(y-3)(y-3)# using exponents?...
1 answers
A projectile is launched from the ground at time t=0. When t=2 s, its velocity is...
A projectile is launched from the ground at time t=0. When t=2 s, its velocity is given as: V = (25i +5j) mís. Find the maximum height of the projectile Select one: a. 26 m b. 18.5 m c. 12.3 m d. 31.2 m Question 4 Not yet answered Marked out of 1.00 Flag question An object moved in one dimens...
1 answers
6. Use the Credit Hour data provided on the first page to complete the frequency table...
6. Use the Credit Hour data provided on the first page to complete the frequency table below using 4 classes. Enter all values in the chart below before moving on to #7 Excel directions for the histogram Class width=(max-min)/4= (always go up to the next whole number) Class Frequency Midpoint Excel ...
1 answers
You want to buy a Disney bond with two years until maturity and a coupon rate...
You want to buy a Disney bond with two years until maturity and a coupon rate of 9.50% per year, paid semiannually. FED reports that the market interest rate for similar bonds is only 3.8% per half-year. a. Find the bond's price today and 6 months from now after the next coupon is paid. (Do not ...
1 answers
A) Structurally unemployed. B) Cyclically unemployed. CV Frictionally unemployed D Seasonally unemployed. 15. Inflation is: A)...
A) Structurally unemployed. B) Cyclically unemployed. CV Frictionally unemployed D Seasonally unemployed. 15. Inflation is: A) A rise in the price of every good and service. B) An increase in relative prices of all goods and services. A situation in which purchasing power increases (D) An increase i...
1 answers
On January 1, 2020, Pharoah Company had the following stockholders' equity accounts. Common Stock ($26 par...
On January 1, 2020, Pharoah Company had the following stockholders' equity accounts. Common Stock ($26 par value, 58,500 shares issued and outstanding) $1,521,000 Paid-in Capital in Excess of Par-Common Stock 192,000 Retained Earnings 622,000 During the year, the following transactions occurred....
1 answers
1) (23.0 pts) A student in a physics class decides to test their understanding of Projectile...
1) (23.0 pts) A student in a physics class decides to test their understanding of Projectile Motion theory by determining how fast they throw a baseball. On a nice day, with essentially n wind, they go out to a park to perfonm the experiment. The student throws the baseball to get an idea of the ang...
1 answers
Interrupt when you have questions QUESTION 21 Researchers disagree on the significance and extent of gender...
Interrupt when you have questions QUESTION 21 Researchers disagree on the significance and extent of gender differences in lstening True 4 points Save Answer False QUESTION 22 4 points The evaluation stage of listening can be made more effective by resisting Save Answer evaluation until you fully un...
1 answers
Determining ending balances of accounts on the consolidated balance sheet Assume that the parent company acquires...
Determining ending balances of accounts on the consolidated balance sheet Assume that the parent company acquires its subsidiary by exchanging 55,000 shares of its Common Stock, with a market value on the acquisition date of $40 per share, for all of the outstanding voting shares of the investee. In...
1 answers
Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income...
Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December On off Company Company $64,230 $80,930 (a) 91,450 163,140 (a) 172,140 (b) 24...