User Account

All Pages

Discuss the estimated net fair value of the horse

Assignment Help Accounting Basics
Reference no: EM131750057

Kandon Enterprises, Inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and on November 15, 2016, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2017. At December 31, 2016, the component was considered held for sale.
On December 31, 2016, the company's fiscal year-end, the book value of the assets of the horse division was $272,000. On that date, the fair value of the assets, less costs to sell, was $220,000. The before-tax loss from operations of the division for the year was $160,000. The company's effective tax rate is 40%. The after-tax income from continuing operations for 2016 was $420,000.

Required:

1. Prepare a partial income statement for 2016 beginning with income from continuing operations. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

2. Prepare a partial income statement for 2016 beginning with income from continuing operations. Assuming that the estimated net fair value of the horse division's assets was $440,000, instead of $220,000. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

Reference no: EM131750057

Questions Cloud

Motivation as opposed to discussing motivational theory : Motivation As opposed to discussing motivational theory, let’s discuss what works (or doesn’t) work in terms of motivating you personally.
Examine that shares necessarily represent bargains : Some common shares have traded at prices that are considerably lower than their book values. How do you explain this? Do such shares necessarily represent.
Describes maintenance of quality of life : Describes maintenance of quality of life, Explains outcomes and prognosis, Describes current areas of research into prevention and treatment or cure.
Discuss the alternative methods of investment appraisal : Discuss the alternative methods of investment appraisal and describe the limitations of these to help justify your arguments.
Discuss the estimated net fair value of the horse : Prepare a partial income statement for 2016 beginning with income from continuing operations. Assuming that the estimated net fair value of the horse
How the technology fits the business idea : E-commerce requires focusing on technology first and then determining how the technology fits the business idea.
Potential advantages or disadvantages of the development : An increasing proportion of common shares is no longer held by individual investors, but by financial institutions such as pension funds and insurance.
Discuss income from continuing operations : Prepare an income statement for 2016 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares
Discuss about capital rationing : It is not uncommon for management to accept capital rationing rather than to issue new shares. In this context, it is often argued that the firm's shares.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Indicate how these accounts would be reported

O'Neil, Inc. began work on a $7,000,000 contract in 2010 to construct an office building. O'Neil uses the percentage-of-completion method.

  The beginning assets were 437800 beginning liabilities were

the beginning assets were 437800 beginning liabilities were 262660 common stock issued during the year totaled 45100

  Compute the amount of realized gross profit to be

swift corp. a capital goods manufacturing business that started on january 4 2012 and operates on a calendar-year basis

  Question regarding the consignment computations

On August 15, 2014, Japan Ideas consigned 500 electronic play systems, costing $100 each, to YoYo Toys Company. The cost of shipping the play systems amounted to $1,250 and was paid by Japan Ideas.

  Why the type of behavior seems common in your industry

What improvements would you recommend to help the industry prevent and detect the type of fraud?

  Calculate the net patient service revenue

Using the available information, calculate the net patient service revenue that would be reported on the statement of revenues, expenses

  Determine the rate earned on total asset the rate earned on

the following selected data were taken from the financial statements of the sigemund group inc. for december 31 2010

  Indicate whether it represents an accounting error

For each of the following situations, indicate whether it represents an accounting error and explain why it is or is not an error. Also state whether a trial balance would indicate that an error exists for each situation. Cash received from a custome..

  What is the connection between cost of the ring major

what is the connection between cost of the ring major materialslabor overhead and the items price to a

  Generate and submit the given reports to client

You are working as an accountant in a regional accounting firm. You have been approached by the owner of "Goodie Gumdrops", a start-up wholesaler.

  Identify the primary advantages of the corporate form

Identify the primary advantages of the corporate form of business.

  Montana mining co mmc paid 200 million for the right to

montana mining co. mmc paid 200 million for the right to explore and extract rare metals from land owned by the state

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd