User Account

All Pages

What would l-mart report in its income statement

Assignment Help Accounting Basics
Reference no: EM133099488

Question - On September 1, 2019, LMart enters into a tentative agreement to sell the assets of its office equipment division. This division qualifies as a component of the entity according to GAAP regarding discontinued operations. The division's contribution to LMart's operating income for 2013 was a $3 million loss before taxes. Jacob has an average tax rate of 40%.

Required - Assume that LMart sold the division's assets on December 31, 2019, for $19 million. The book value of the division's assets was $24 million at that date.

Under these assumptions, what would LMart report in its 2019 income statement regarding the office equipment division?

Explain where this information would be presented and show all work to receive full credit.

Reference no: EM133099488

Questions Cloud

What is the most you should pay for the annuity : You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity
Handle high financial loss : True or False: Risk tolerance is very important to consider when deciding to approach in a risk seeking rather than a risk adverse manner, as to establish your
Optimism and enthusiasm launch businesses : Too often, entrepreneurs brimming with optimism and enthusiasm launch businesses destined for failure because their founders
Manufacture goods outside of canada : Why do you think that some Canadian companies in the B2C space refuse to manufacture their goods outside of Canada? Discuss reasons for this strategy.
What would l-mart report in its income statement : Under these assumptions, what would LMart report in its 2019 income statement regarding the office equipment division
United states follow strict ethical standards : Do you believe most businesses in the United States follow strict ethical standards? Give details.
Create a financial analysis of market place : Create a financial analysis of market place that sell beauty products
Explain little law : Explain Little's Law in your own words. How can it be used, and what are its limitations?
Cultural barriers to effective communication : What are some cultural barriers to effective communication and how to overcome them?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the accounting rate of return

Barnes Company purchases a machine for $500,000. The company anticipates a yearly after-tax net income of $30,000. Calculate the accounting rate of return

  Donnelly corporation manufactures and sells t-shirts

donnelly corporation manufactures and sells t-shirts imprinted with college names and slogans. last year the shirts

  Formulate and solve a linear optimization model

Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the production manager explaining.

  Problem-dropping a product line and selling more tours

Dropping a product line, selling more tours. Nelson River Tours, a division of Old World Travel, offers two types of guided fishing tours.

  What is the company WACC

Lancelin Manufacturing has a target debt-to-equity ratio of .35. It only has ordinary share for its equity. What is the company WACC

  Journalizing the adjusting entry

The records of Nevada Co. indicated that $420,000 of merchandise should be on hand on December 31, 2010. The physical inventory indicates that $370,000 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage ..

  Prepare journal entries necessary to record this exchange

Required - Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance

  Determine the budgeted contribution margin

Direct labor costs P 4 per hour. One half of an hour is required to manufacture each unit of finished product. Determine the budgeted contribution margin

  Post to the ledger accounts

Bridgette uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 301 Owner's Capital, No. 400 Service Revenue, No. 726 Salaries and Wages E..

  What is the amount of riley casualty loss deduction

The van was originally purchased for $20,000 and the adjusted basis was $5,800, What is the amount of Riley's casualty loss deduction

  Selected through purely mechanical processes

Investment projects should never be selected through purely mechanical processes. Managers should ask questions about the positive net present value (NPV). Good managers realize that the forecasts behind NPV calculations are imperfect. Therefore, ..

  Prepare the journal entries to record the property tax

Pierce Corp. has a December 31 year end. Prepare the journal entries to record the property tax on (a) April 30, (b) June 30, and (c) December 31

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