Reference no: EM132734150

Question - Hamlet Corporation is based in Halifax. At the end of 20X4, the company's accounting records show the following items:

a. A $114,000 loss from hurricane damage.

b. Total sales revenue of $2,950,000, including $435,000 in the Decolite division, for which the company has a formal plan of sale.

c. Interest expense on long-term debt of $72,000.

d. Increase in fair value of marketable securities of $62,000.

e. Operating expenses of $2,170,000, including depreciation and amortization of $535,000. Of the total expenses, $432,000 (including $82,000 in depreciation and amortization) was incurred in the Decolite division.

f. Hamlet Corporation wrote down tangible capital assets by $36,000 during the year in order to reduce the Decolite division's assets to their estimated recoverable amount.

g. Hamlet has long-term debt denominated in U.S. dollars. Due to the weakening of the U.S. dollar during 20X4, the company has an unrealized gain of $24,000.

h. Hamlet has a subsidiary in France. The euro strengthened during the year, with the result that Norse had an unrealized gain of $18,000 on its net investment in the subsidiary.

i. Hamlet's income tax expense for 20X4 is $78,000. This amount is net of a tax recovery of $27,000 on the Decolite division and a $32,000 tax benefit from hurricane damage.

j. The company had 43,000 common shares outstanding at the beginning of the year; an additional 7,500 were issued on November 30.

Required - Prepare continuous SCI.