Prepare an income statement

Assignment Help Accounting Basics

Reference no: EM13675386

For the year ending December 31, 2013, Micron Corporation had income from continuing operations before taxes of $1,390,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material.

1.
During 2013, one of Micron's factories was damaged in an earthquake. As a result, the firm recognized a loss of $819,000. The event is considered unusual and infrequent.
2.
In November 2013, Micron sold its Waffle House restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2013. The income from operations of the chain from January 1, 2013, through November was $179,000 and the loss on sale of the chain's assets was $338,000.
3.
In 2013, Micron sold one of its six factories for $1,580,000. At the time of the sale, the factory had a carrying value of $1,290,000. The factory was not considered a component of the entity.
4.
In 2011, Micron's accountant omitted the annual adjustment for patent amortization expense of $139,000. The error was not discovered until December 2013.

Prepare an income statement

Reference no: EM13675386

Questions Cloud

Financial statement that reports the revenue and expense : Financial statement that reports the revenue and expense for a period of time such as year or month

Inventory turnover ratio : Inventory turnover ratio

What threats does the industry face : What threats does the industry face and what are the overriding trends in the industry? How is the industry regulated and what impact does regulation have on industry operations?

Transactions reported in classification : Transactions Reported in Classification, If an item needs to be reported on the balance sheet, select "Balance Sheet" and if an item need not be reported at all, select "Not to be Reported."

Prepare an income statement : Prepare an income statement

Which method of presenting cash flows : Which method of presenting cash flows

Interpersonal relationship - important relationships : Choose an important relationship with one person in your life to explore in more detail and using the concepts listed in that section, explain whether or not you agree with how this relationship formed, or if it followed the steps as listed.

Describe the three federal filing : Describe the three federal filing

Compute the probability of at least 10 backorders : If the processing time is exponentially distributed with rate 96 orders per day (average processing time = 15 minutes), compute the following:

User Account

All Pages