Question at the starting of its 2010 calendar-year

Assignment Help Financial Accounting

Reference no: EM13349777

Question :

At the starting of its 2010 calendar-year accounting period, ABC, Inc. had retained earnings of $1,500,000. Through 2010, ABC reported income from continuing operations before taxes of $400,000. The subsequent additional transactions occurred in 2010 but were not added in the $400,000. Consider all of the subsequent were material.

At the starting of 2008, the company purchased a machine for $10,000 that they expensed during 2008. The company would usually have used the straight-line depreciation method with a $1,000 salvage value and 10 year useful life. This was discovered as the accountant was reviewing the information for the 2010 financial statements. Depreciation expense on this machine for 2010 was not added in the $400,000 above.

2. ABC had a profit on sale of a plant asset of $5,000 (pre-tax).

3. ABC had an uninsured flood loss of $50,000 (pre-tax) which was considered to be unexpected.

4. ABC declared and paid cash dividends of $100,000 on its general stock.

a) State the correct value to be shown on the 2010 Income Statement for the sub-total, "Income From Continuing Operations before Taxes."

$___________________________

b) Prepare an income statement for the year 2010, starting with Income from Continuing Operations before Taxes (part a). Consider the tax rate was 40%.

Reference no: EM13349777

Questions Cloud

Question ty wilkins and desmond drury have decided to form : question ty wilkins and desmond drury have decided to form a partnership. they have agreed that drury is to invest

Question michael porters five forces model is a required : question michael porters five forces model is a required tool to aid organizations facing the challenging decision of

Question prepare journal entries in the general fund of the : question prepare journal entries in the general fund of the brownville school district.a. the district had outstanding

Question 1 a anyone who has bought an airline ticket will : question 1 a. anyone who has bought an airline ticket will know it is possible to pay anyone of a large number of

Question at the starting of its 2010 calendar-year : question at the starting of its 2010 calendar-year accounting period abc inc. had retained earnings of 1500000. through

Question the flexible budget at the 70000-unit and the : question the flexible budget at the 70000-unit and the 80000-unit levels of activity is given below.70000 units 80000

Question clem is married and is a skilled carpenter clems : question clem is married and is a skilled carpenter. clems wife wanda works part-time as alternate grade school

Question 1 sully corp presently has an eps of 240 and the : question 1. sully corp. presently has an eps of 2.40 and the benchmark pe for the company is 23. earnings are expected

Question the subsequent facts are taken from the able : question the subsequent facts are taken from the able companys records through its first year of operations. purpose a

User Account

All Pages