User Account

All Pages

What would martinez report in income statement

Assignment Help Accounting Basics
Reference no: EM132696931

On September 1, 2021, Martinez Appliances enters into a tentative agreement to sell the assets of its Commercial division. This division qualifies as a component of the entity according to GAAP regarding discontinued operations. The division's contribution to Martinez's operating income for 2021 was a $4 million loss before income tax. Martinez has an average tax rate of 25%.

Problem 1: Assume that Martinez sold the division's assets on December 31, 2021, for $25 million. The book value of the division's assets was $18 million at that date. In this scenario, what would Martinez report in its 2021 income statement regarding the Commercial division?

Problem 2: Assume that Martinez had not yet sold the division's assets by the end of 2021. Further, assume that the fair value less cost to sell of the division's assets at December 31, 2021, was $10 million and was expected to remain the same when the assets are sold in 2022. The book value of the division's assets was $18 million at the end of 2021. In this scenario, what would Martinez report in its 2021 income statement and balance sheet regarding the Commercial division?

Reference no: EM132696931

Questions Cloud

How and list the health care funding methods used in canada : How and List the health care funding methods used in Canada. State the health care funding method used in your jurisdiction and describe the payroll implication
Which is true of tax-free reorganizations : Which is true of tax-free reorganizations? In order to achieve reorganization treatment, the transactions must be pursuant to a written plan of reorganization.
What amount of deferred tax liability should be reported : What amount of deferred tax liability should be reported? Bramble Corp. follows IFRS and began operations in 2020 and reported accounting income
What is the weighted averge cost per unit : Monty Distribution markets CDs of the performing artist Fishe. Calculate weighted average cost per unit. What is the weighted averge cost per unit?
What would martinez report in income statement : On September 1, 2021, What would Martinez report in its 2021 income statement and balance sheet regarding the Commercial division?
What is effect on net income if the company will shutdow : What is the effect on net income if the company will shutdown? Canvass Enterprises is engaged in the bottling of a chemical compound used for car paints
Determine the gross profit for july and ending inventory : Assume that one unit is sold on July 30 for $64. Determine the gross profit for July and ending inventory on July 31 using the last-in, first out (LIFO) method.
What is backyard creations direct material quantity variance : Backyard Creations purchased 7,800 feet of copper tubing at a price of $2.30. What is Backyard Creations' direct materials quantity variance for the period?
Recompute the costs allocated to each unit : Livan, the manager of the Miami unit, is unhappy. Recompute the costs allocated to each unit using the separate rates for routine and transitional matters.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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