Income from continuing operations before taxes

Assignment Help Financial Management
Reference no: EM131446251

For the year ending December 31, 2016, Micron Corporation had income from continuing operations before taxes of $1,320,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material.

1. In November 2016, Micron sold its Waffle House restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2016. The income from operations of the chain from January 1, 2016, through November was $172,000 and the loss on sale of the chain’s assets was $324,000.

2. In 2016, Micron sold one of its six factories for $1,440,000. At the time of the sale, the factory had a carrying value of $1,220,000. The factory was not considered a component of the entity.

3. In 2014, Micron’s accountant omitted the annual adjustment for patent amortization expense of $132,000. The error was not discovered until December 2016.

Required:

Prepare Micron’s income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2016. Assume an income tax rate of 30%. Ignore EPS disclosures.

Reference no: EM131446251

Questions Cloud

Administration ensure that digital government services : This question can be asked of any winning candidate (federal, state, or local) that will oversee a government organization offering digital government services (you should not address any single candidate or party).
Evaluate the issue based on theoretical perspective : Choose one contemporary issue or problem related to developmental psychology that is prevalent in today's news and research a minimum of one peer-reviewed article on this issue. Evaluate the issue based on one of the theoretical perspectives (Fre..
Perfect idea for the deployment of the sql : 1. Why is the OS server the perfect idea for the deployment of the SQL? 2. Why is the implementation of SQL in OS such as Windows 7 and 10 suitable?
How useful are they as measures of customer satisfaction : The customer service call centre at ABC is a high-volume operation answering approximately 25 000 customer queries per week. ‘To provide customer service that delights' is its key strategic objective.
Income from continuing operations before taxes : For the year ending December 31, 2016, Micron Corporation had income from continuing operations before taxes of $1,320,000 before considering the following transactions and events. In 2016, Micron sold one of its six factories for $1,440,000. At the ..
Is security problems or situations : For this post, tell us a story about information security gone wrong, or even gone right, if you were able to defend against an attack. Do you have any personal or business experiences that involved IS security problems or situations?
What is etherapy and what are some of the risks of etherapy : Describe at least three different scenarios where you (as a counselor) would be obligated (ethically and even legally) to break a client's confidence and describe the steps that you would take.Describe a situation where ethics in the mental health ..
Explain how the kabre diaspora came to exist in southern : Explain how the Kabre diaspora came to exist in Southern Togo and how it maintains ties with the homeland in the north - Do you agree or disagree with the author based on what we have read about Remotely Global?
Identify any ethical violation and then describe : Case 2 Jake Oliver was filled with guilt when he arrived for his initial appointment with psychologist, Dr. John Wang. After asking and receiving assurance that their conversations would be confidential, Mr. Oliver disclosed that, two months earl..

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is the difference in the current prices of these bonds

Two bonds have a coupon rate of 6.5 percent, semi-annual payments, face values of $1,000, and yields to maturity of 7.1 percent. Bond S matures in 6 years and bond L matures in 12 years. What is the difference in the current prices of these bonds?

  List and describe the different channels

List and describe the different channels that banks use to deliver banking services. For each, describe the characteristics of the customers who will likely be active users of services in that channel.

  What was the interest expense for the year

The Cant Get More Fun Than This Company reported EBIT of $20 million and net income of $11 million. If the corporate tax rate is 35% for this company in this tax bracket, what was the interest expense for the year?

  Shares can be issued without the approval of shareholders

The authorized share capital of the Alfred Cake Company is 110,000 shares. The equity is currently shown in the company’s books as follows: Common stock ($2 par value) $ 73,000 Additional paid-in capital 23,000 Retained earnings 43,000 Common equity ..

  Produce an inflow after operating costs

A factory costs $800,000. You reckon that it will produce an inflow after operating costs of $170,000 a year for 10 years. If the opportunity cost of capital is 14%, what is the net present value (NPV) of the factory?

  Determine the price that would be necessary

Assume that the price at 3:00 P.M. was 150 15/32. Determine the price at 5:00 P.M. that would be necessary to justify deliver.

  Make sure to clarify the intercept and the slope

The expected return on the market portfolio mu m = E[Rm] = 15%, the standard deviation is sigma m = 25% and the risk-free rate is Rf = 5%. Suppose the CAPM holds. Draw on a diagram with the Capital Market Line (CML) derived from the above data. Make ..

  What is the yield to maturity of this bond

A Japanese company has a bond outstanding that sells for 86 percent of its ¥100,000 par value. The bond has a coupon rate of 4.5 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?

  Proceeds to buy back shares of company common stock

Ridgefield Enterprises has total assets of $300 million and EBIT of $45 million. The company currently has no debt in its capital structure. The company is contemplating a recapitalization where it will issue debt at 10 percent and use the proceeds t..

  Criticized as not being representative of the economy

The DJIA is often criticized as not being representative of the economy given that it comprises of stocks of only 30, large, mature, and less volatile companies. It has been observed that the DJIA performance often does not mimic that of the NYSE. Wh..

  Comment on the current ratios-total debt to asset ratios

Comparative data at the end of this past year for three firms following aggressive, moderate, and conservative approaches to working capital policy follow (in thousands of dollars): Calculate, compare, and comment on the current ratios, total debt to..

  What is the bonds expected rate of return

The market price is $900 for a 10-year bond that pays 8% interest semi annually. What is the bond's expected rate of return? If the required rate of return is 11%, is this bond overpriced, fairly priced, or underpriced? (Please show your calculation)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd