Reference no: EM133008514

Haliteck corp. is based in Halifax. At the end of 20X4, the company's accounting records show the following items:

A: A $100,000 loss from hurricane damage.

B: Total sales revenue of $2,600,000 including $400,000 in the Decolite division, for which the company has a formal plan of sale.

C: Interest expense on long-term debt of $65,000.

D: Increase in fair value of marketable securities of $55,000

E: Operating expenses of $2,100,000 including depreciation and amortization of $500,000. Of the total expenses, $390,000 (including $75,000 in depreciation and amortization) was incurred in the Decolite division.

F: Haliteck corp. wrote down tangible capital assets by $35,000 during the year in order to reduce the Decolite division's assets to their estimated recoverable amount.

G: Haliteck 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 $20,000

H: Haliteck has a subsidiary in France. The euro strengthened during the year, with the result that Norse had an unrealized gain of $15,000 on its net investment in the subsidiary.

I: Haliteck's income tax expense for 20X4 is $76,000. This amount is net of a tax recovery of $20,000 on the Decolite division and a $25,000 tax benefit from hurricane damage.

J: The company had 34,000 common shares outstanding at the beginning of the year, an additional 8,000 were issued on March. 31.

Required:

Problem 1: Prepare a continuous SCI.