Question
In: Accounting
Income from continuing operations includes ________. A. the taking of company assets by a foreign government...
| Income from continuing operations includes ________. |
A. the taking of company assets by a foreign government
B. extraordinary losses but not extraordinary gains
C. gains and losses from discontinued operations
D. losses due to labor strikes
Solutions
Expert Solution
Continuing operations means the ongoing Operation of the company in its normal due course of business. All the expenses and income from the Operation of the business is to be taken into consideration to calculate the income from continueing Operation.
All the extraordinary losses as well as extraordinary gains are to be considered while calculating the income as even the gains are part of Operation.
Any gain or loss from discontinued operations are excluded as only the continued operation income is to be considered.
If any foreign company takes the asset of the company it means that the company is been taken over by the other company and such a transaction is not an continued operation transaction.
Losses due to labour strike are continued operation expense which are incurred in daily operations of the business as the labour plays an important role in daily operations of the company.
Therefore the correct option is D
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ekkarill92 answered 2 years agoRelated Solutions
Randolph Company reported pretax net income from continuing operations of $1,003,000 and taxable income of $710,000....
Randolph Company reported pretax net income from continuing
operations of $1,003,000 and taxable income of $710,000. The
book-tax difference of $293,000 was due to a $283,000 favorable
temporary difference relating to depreciation, an unfavorable
temporary difference of $140,000 due to an increase in the reserve
for bad debts, and a $150,000 favorable permanent difference from
the receipt of life insurance proceeds. Randolph Company’s
applicable tax rate is 34 percent.
a. Compute Randolph Company’s current income
tax expense.
b. Compute Randolph...
Randolph Company reported pretax net income from continuing operations of $959,000 and taxable income of $590,000....
Randolph Company reported pretax net income from continuing
operations of $959,000 and taxable income of $590,000. The book-tax
difference of $369,000 was due to a $205,000 favorable temporary
difference relating to depreciation, an unfavorable temporary
difference of $88,000 due to an increase in the reserve for bad
debts, and a $252,000 favorable permanent difference from the
receipt of life insurance proceeds.
c. Compute Randolph Company’s effective tax
rate. (Round your answer to 2 decimal places.)
Effective
tax rate
%
d....
What are the components of earnings (income from continuing operations)? What are discontinued operations? What are...
What are the components of earnings (income from
continuing operations)? What are discontinued
operations?
What are the components of comprehensive
income?
Describe the importance of separating income from continuing operations from other, nonrecurring items.
Describe the importance of separating income from continuing
operations from other, nonrecurring items.
1. what items in the income statement explain he change in income from continuing operations as...
1.
what items in the income statement explain he change in income from
continuing operations as a percentage of revenue
2. what are possible explanation for changes in the percentage
of operating costs
Discuss the importance of income from continuing operations and describe its components. The purpose of the...
Discuss the importance of income from continuing
operations and describe its components.
The purpose of the income statement is to summarize the
profit-generating activities that occurred during a particular
reporting period. The purpose of the statement of cash flows is to
provide information about the cash receipts and cash disbursements
of an enterprise that occurred during the period.
TConsider important issues dealing with income statement
content, presentation, and disclosure and to provide an overview of
the statement of cash flows.
Assume that income from continuing operations (net of tax) is $50,000, what is the amount of...
Assume that income from continuing operations (net of tax) is
$50,000, what is the amount of EPS reported for discontinued
operations?
Using the information below, determine
the number indicated above to be reported on the income statement,
the statement of comprehensive income, or the retained earnings
statement for the year ended Dec. 31, 2020
Assume a 30% tax rate on all items and
that 100,000 shares of common stock were outstanding during the
year.
All amounts except for the beginning...
ABC Company is preparing its 2018 financial statements. Income from Continuing Operations (ICO) for 2018 was determined...
ABC Company is preparing its 2018 financial
statements. Income from
Continuing Operations
(ICO) for 2018 was determined to be $1,800,000,
but upon further review, ABC's accountant is not certain this
number is accurate. ABC has a corporate tax rate of 30%.
Additionally, the company reports one year of financial data on the
face of the financial statements. Use the following information to
determine the adjustments, if any, to correctly report Income From
Continuing Operations.
1. During 2018, ABC experienced a labor...
The Bridgeport Corporation had income from continuing operations of $12 million in 2020. During 2020, it...
The Bridgeport Corporation had income from continuing operations
of $12 million in 2020. During 2020, it disposed of its restaurant
division at a loss of $98,000 (net of tax of $38,000). Before the
disposal, the division operated at a loss of $202,000 (net of tax
of $135,000) in 2020. Blue Collar also had an unrealized gain-OCI
of $44,000 (net of tax of $18,000) related to its FV-OCI equity
investments. Bridgeport had 10 million common shares outstanding
during 2020.
Prepare a...
The Home Depot reported earnings from continuing operations before the provision for income taxes of $6,068...
The Home Depot reported earnings from continuing operations
before the provision for income taxes of $6,068 million for the
year ending January 29, 2012, in its 10-K. Footnote 6 revealed that
the provision for income taxes was $2,185 million and that the
current amount paid to the federal, state, and foreign governments
was $1,950 million.
1. Compute the earnings from continuing operations after
taxes.
2. Prepare the journal entry to record taxes on ordinary
activities. Omit explanation.
3. Explain why...
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