Business College

Esquire Comic Book Company had income before tax of $1,550,000 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 $395,000. The division generated before-tax income from operations from the beginning of the year through disposal of $610,000. 2. The company incurred restructuring costs of $60,000 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.

Answers

Answer 1

Answer:

                   Esquire Comic Book Company

                                Income Statement

                For the Year Ended December 31, 2021

Operating income                                                 $1,550,000

Restructuring costs                                                 ($60,000)

Income from continuing operations b/ Taxes     $1,490,000

Income tax expense                                              ($372,500)

Income from continuing operations                                        $1,117,500

Discontinued operations:

Operating income                                          $610,000Loss on disposal                                          ($395,000)Income tax on discontinued operations       ($53,750)

Income from discontinued operations                                     $161,250

Net income                                                                             $1,278,750

Explanation:

Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.

Related Questions

Determining Cash Payments to Stockholders The board of directors declared cash dividends totaling $209,800 during the current year. The comparative balance sheet indicates dividends payable of $50,400 at the beginning of the year and $45,400 at the end of the year. What was the amount of cash payments to stockholders during the year?

Answers

Answer:

  $214,800

Explanation:

The amount paid is the sum of the amount declared and the difference in amounts payable.

  dividends paid = $209,800 +50,400 -45,400

  dividends paid = $214,800

Listening skills are important for career success and organizational effectiveness. Considered one of the soft skills, listening skills allow you to improve the effectiveness of your communication with supervisors, colleagues, and customers. To become a more powerful listener, you can employ a variety of techniques. For example, if you're having trouble focusing on a message, you could_______________

Answers

Answer:

Identify the key facts in the message.

Explanation:

Listening skills are important for career success and organizational effectiveness. Considered one of the soft skills, listening skills allow you to improve the effectiveness of your communication with supervisors, colleagues, and customers. To become a more powerful listener, you can employ a variety of techniques.

For example, if you're having trouble focusing on a message, you could identify the key facts contained in that message.

Identifying the key facts implies, you will objectively pick the truths contained therein, as well as high and salient points of the message.

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