Book value of the divisions assets

Assignment Help Accounting Basics

Reference no: EM13129090

Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2011, the company adopted a plan to sell the assets of the division. The actual sale was effected on December 15, 2011, at a price of $600,000. The book value of the division's assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale.

The division incurred before-tax operating losses of $130,000 from the beginning of the year through December 15. The income tax rate is 40%. Chance's after-tax income from its continuing operations is $350,000.

Required:

Prepare an income statement for 2011 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year.

Reference no: EM13129090

Questions Cloud

What is the percent yield : In a combustion reaction 4 moles of C8H18 react with 8 moles of O2. If the actual yield of CO2 produced is 28.16 grams, what is the percent yield?

Combined statement of income and comprehensive income : Prepare a combined statement of income and comprehensive income for 2011, beginning with net income.

Estimate probability at least two of stocks increase value : Remaining the same value. Estimate the probability at least two of the stocks increase in value. Estimate the probability at least two of the stocks increase in value.

What is the final volume in milliliters : What is the final volume in milliliters when 0.780 of a 39.7 (m/v) solution is diluted to 25.0 (m/v)? Express your answer numerically in milliliters.

Book value of the divisions assets : The actual sale was effected on December 15, 2011, at a price of $600,000. The book value of the division's assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale.

Probability-small businesses will fail during given month : If the mean number of small business failures per month is 10, what is the probability that exactly four small businesses will fail during a given month?

How many grams of hcl are required : How many grams of HCl are required to react with the 344 grams of FeCl2?

How the company coca cola could best allocate : Determine how the company Coca cola could best allocate costs to divisions, plants, departments, contracts, and / or products. Explain your rationale.

What volume will 135 g of butane occupy : What volume will 135 g of butane occupy at 745 torr and 35 C?

User Account

All Pages