Reference no: EM133180617
Question - ABC Company, a holding company, has two operating subsidiaries: one manufacturing wheelbarrows and the other manufacturing toothbrushes. The wheelbarrow subsidiary has been unprofitable, and in late September 2022, ABC Company's management contracted to sell that subsidiary to another company for P600,000. The sale will be effective on December 31, 2022.
ABC Company operated the wheelbarrow subsidiary during the last three months of 2023 and incurred a P10,000 loss (before income taxes).
At December 31, 2022, the carrying amount of ABC Company's investment in the wheelbarrow subsidiary is P100,000. Both the P40,000 loss on the sale of the investment and the P10,000 operating loss will be deductible on ABC Company's 2022 income tax return, resulting in an anticipated savings at an assumed 20% tax rate.
Required - Provide you answer for the question below. Show your solution.
Determine the amount of the "loss on disposal of wheelbarrow subsidiary, net of applicable income tax benefit" which should be presented in ABC's income statement for the year ended December 31, 2022.
|
Dynamics of human service program management
: Individuals who enter into a human service area of practice often start from an altruistic perspective and a desire to help a particular population.
|
|
Total rewards is organizational system of rewards
: Total rewards is an organizational system of rewards that is inclusive of compensation, benefits, and any tangible or intangible items employees value
|
|
What do you think of tyler decision
: What do you think of Tyler's decision? How could he have made a more informed decision? What does your textbook suggest that Tyler do now
|
|
Different personality styles to better communicate and lead
: How will you use the understanding of different personality styles to better communicate and lead? Summarize the feedback you receive.
|
|
Determine amount of loss on disposal of wheelbarrow
: Determine the amount of the "loss on disposal of wheelbarrow subsidiary, net of applicable income tax benefit" which should be presented in ABC income statement
|
|
Record the consolidation elimination entries for intragroup
: Dipendra Ltd sold inventory to Kiran Ltd $24,900. The tax rate is 30%. Record the consolidation elimination entries for the intragroup sale of inventory
|
|
Examining a current national or international conflict
: Is very important for people to know and understand the events that are happening locally, nationally, and globally. Examining a current national or internation
|
|
Shared benefits in such alliances
: Considering the history between Great Britain and the U.S., and between France and the U.S., do you think there are shared benefits in such alliances?
|
|
Calculate the return on investment expected on the new line
: Koch has just received a proposal to invest $2,000,000 in a new line of energy drinks. Calculate the return on investment expected on the new line
|