8· The major components of the income statement are listed below: A = income bef

Question

8· The major components of the income statement are listed below: A = income before income tax B income from continuing operations C earnings per share D results from discontinued operations In what sequence do they normally appear on the income statement? a. B-A-D-C b. B-A-C-D c. A-C-B-D d. A-B-C-D e. A-B-D-c In 2014, Dallas Company had sales of $600,000; cost of sales of $430,000: interest expense of $12,000; a gain on the sale of a component of $52,000; and a loss of on the sale of equipment of $25,000, The tax rate is 30%, what was Dallas's reported income from continuing operations? a· $145,100 b. $133,000 c $119,000 d· $110,600 e, -$ 93,100 9. 10. Nelly Company sold its cattle ranching component on June 30, 2014, for a gain of $1,000,000. From January through June, the component had sustained operating income of $300,000. The income tax rate is 30%. How should Nelly report the income from the component and the sale of the component on its income statement? a. $300,000 included in Operating Income and a $1,000,000 gain on sale of component in Other Income and Expenses $210,000 included in Operating Income and a $700,000 gain on sale of component in Other Income and Expenses c. as a net-of-tax gain of $910,000 shown after income from continuing operations d. as $210,000 operating income and a $700,000 gain on sale of component, both shown after income from continuing operations $1,300,000 included in operating income e.

Explanation / Answer

Question 8

Answer e. A-B-D-C

Question 9

Answer is e.$93,100

Question 10

Answer d. as $ 210,000 operating income and a $ 700,000 gain on sale of component, both shown after income from continuing operations.

Sales       600,000 Cost of sales     (430,000) Interest Expense       (12,000) Loss on the sale of equipment       (25,000) Income from continuing operations before income taxes       133,000 Income Tax expense          39,900 Income from continuing operations          93,100

Related Questions

Navigate

• Browse (All)
• Browse 8
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.