Reference no: EM133728
Question :
At the starting of its 2010 calendar-year accounting period, ABC, Inc. had retained earnings of $1,500,000. Through 2010, ABC reported income from continuing operations before taxes of $400,000. The subsequent additional transactions occurred in 2010 but were not added in the $400,000. Consider all of the subsequent were material.
At the starting of 2008, the company purchased a machine for $10,000 that they expensed during 2008. The company would usually have used the straight-line depreciation method with a $1,000 salvage value and 10 year useful life. This was discovered as the accountant was reviewing the information for the 2010 financial statements. Depreciation expense on this machine for 2010 was not added in the $400,000 above.
2. ABC had a profit on sale of a plant asset of $5,000 (pre-tax).
3. ABC had an uninsured flood loss of $50,000 (pre-tax) which was considered to be unexpected.
4. ABC declared and paid cash dividends of $100,000 on its general stock.
a) State the correct value to be shown on the 2010 Income Statement for the sub-total, "Income From Continuing Operations before Taxes."
$___________________________
b) Prepare an income statement for the year 2010, starting with Income from Continuing Operations before Taxes (part a). Consider the tax rate was 40%.
|
Evaluate the division of the net income
: Plan except that Wilkins is also to be allowed a bonus equal to 20 percent of the amount by which net income exceeds the total salary allowances.
|
|
Execute a detailed porter''s five forces analysis
: Evaluate which of Porter's Three Generic strategies you may use as you rebuild The Broadway Cafe for the 21 st century.
|
|
Prepare journal entries in the general fund
: Prepare journal entries in the General Fund of the Brownville School District.
|
|
Iata methods
: Excursion, Purchase Excursion, Advance Purchase Excursion, Instant Purchase Excursion, Super Apex, IATA code, Affinity Group, Common Interest, Incentive Group, Non Affinity group
|
|
Prepare an income statement for the year 2010
: Prepare an income statement for the year 2010, starting with Income from Continuing Operations before Taxes (part a). Consider the tax rate was 40%.
|
|
Evaluate the income taxes
: Complete the flexible budget at the 90,000-unit level of activity. Consider that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 % of operating income.
|
|
Evaluate the amount of clems expenses
: Evaluate the amount of Clem's expenses that are deductible for AGI this year under the subsequent circumstances
|
|
What is your estimate of the present stock price
: What is your estimate of the present stock price What is the target stock price in one year?
|
|
Determine the gross margin from the first sale
: Determine the gross margin from the first sale
|