+1-415-670-9189
info@expertsmind.com
Prepare a 2004 multiple step income statement for green
Course:- Accounting Basics
Reference No.:- EM13601511




Assignment Help
Assignment Help >> Accounting Basics

On its 200 4financial accounting income statement, the green corp reported " net operating income of 900000. Additional information considered not considered in the 900000 is shown below
a) the company reviewed it Dec 31 2004 account receivable balance and determined that 26000 of these receivables would never be collected. Theses receivables were written off.
b) In late 2004 green reclassified machinery from property plant equipment to long term investment recording a 20000 loss on impairment of machinery removed from use . This loss is tax deductible at 25% tax rate
c) in 2004 the sum of 100000 was received as part of lawsuit settlement . No receivable had been previously created for this lawsuit
d) in 200 , green won 80000 in lottery . The lottery ticket was acquired with petty cash fund, this gain which is taxes at normal rates is considered extraordinary.
e) During 2004 , the company sold some temporary investment at a 150000 loss . This loss was taxes 15%
f) in 2004 , an internal audit determined that amortization of intangibles has been misrecorded . Intangible amortization was understated by 60000 in 2002 and 2003 when tax rate was 30% and by 30000 in the current period. a correction was made in 2004
g) in early 2004 green sold land held for resale at 80000 gain
h) the company discontinued one of its operation in 2004 at loss of 200000 before taxes . This 200000 was taxes at normal rates and consists of 120000operation loss and 80000 losses from the disposal.
i) The company had 75000 loss in 2004 from restructuring charges. This loss was a result of incurring cost to restructure the organizations of the company in order to increase efficiencies. Because of current tax laws green is not able to deduct these cost for taxes purposes.

Green 's 2004 effective taxes rate on normal earning is 35%

Prepare a 2004 multiple step income statement for green beginning with " net operating income" . But omitting any earning per share information.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Post Inc, had a receivable from a foregn customer that is payable in customer's loca currency. On Dec 31, 2009, Post correctly included this receivable for 200,000 local curr
All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for convers
In 2001, Donna sells 100 of these shares to Walter (a family friend) for $100,000. In 2007, Egret Corporation files for bankruptcy, and its stock becomes worthless.
a. A vacant lot acquired for $180,000 is sold for $440,000 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3)
Why are tax journals and newsletters generally not cited as authority in professional tax research?When would it be appropriate to cite tax journals or newsletters as authorit
Prepare the journal entry for Donald, Chief, & Berry LLP on August 1, 2011 to record the realization of Other Assets. Prepare the journal entry for Donald, Chief, & Berry LLP
Write a 200- to 300-word description of the four time value of money concepts: present value, present value of an annuity, future value, and future value of annuity.
Articulate positions on moving from US GAAP to IFRS. Build an argument in an influential way to include but not limited to a discussion on similarities between GAAP and IFRS