Question

In: Accounting

Lunar Eclipse Inc. follows IFRS and has the following amounts for the year ended December 31,...

Lunar Eclipse Inc. follows IFRS and has the following amounts for the year ended December 31, 2018: gain on sale of FV-NI investments (before tax), $15,000; loss from operation of discontinued division (net of tax), $42,000; income from operations (before tax), $220,000; unrealized holding gain-OCI (net of tax), $12,000; income tax on income from continuing operations, $63,000; loss from disposal of discontinued division (net of tax), $75,000. The unrealized holding gain-OCI relates to investments that are not quoted in an active market.

Required

1. Calculate income from continuing operations.

2. Calculate net income.

3. Calculate other comprehensive income.

4. Calculate comprehensive income.

5. How would your answers to parts (a) to (d) be different if Lunar Eclipse followed ASPE?

Expert Solution

Answer 1
income from operations (before tax), $220,000

income tax on income from continuing operations, $63,000

Income from continuing operations $157,000

Answer 2

Calculation of Net income

Income from continuing operations $ 157,000

loss from operation of discontinued division (net of tax) ($42,000)

loss from disposal of discontinued division (net of tax) ($75,000)

unrealized holding gain-OCI (net of tax), $12,000

gain on sale of FV-NI investments (before tax) $15,000

NET INCOME $ 67,000

ekkarill92 answered 1 year ago

3. Delray Inc. follows IFRS and has the following amounts for the year ended December 31,...

3. Delray Inc. follows IFRS and has the following amounts for the year ended December 31, 2020: gain on disposal of FV-NI investments (before tax), $15,000; loss from operation of discontinued division (net of tax), $42,000; income from operations (before tax), $220,000; unrealized holding gain-OCI (net of tax) $12,000; income tax on income from continuing operations, $63,000; loss on disposal of discontinued division (net of tax), $75,000. The unrealized holding gain-OCI relates to investments that are not quoted in an...

The income statement for Delta-tec Inc. for the year ended December 31, 2016, was as follows

The income statement for Delta-tec Inc. for the year ended December 31, 2016, was as follows: Delta-tec Inc. Income Statement (selected items) For the Year Ended December 31, 2016 1 Income from operations $299,700.00 2 Gain on sale of investments 17,800.00 3 Less unrealized loss on trading investments 72,500.00 4 Net income $245,000.00 The balance sheet dated December 31, 2015, showed a Retained Earnings balance of $825,000. During 2016, the company purchased trading investments for the first time...

Metlock, Inc. has the following information available for accruals for the year ended December 31, 2017....

Metlock, Inc. has the following information available for accruals for the year ended December 31, 2017. The company adjusts its accounts annually. 1. The December utility bill for $385 was unrecorded on December 31. Metlock paid the bill on January 11. 2. Metlock is open 7 days a week and employees are paid a total of $3,150 every Monday for a 7-day (Monday–Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28–Thursday, December...

The information that follows is for Becky’s Baskets for the year ended December 31, 2017 and...

The information that follows is for Becky’s Baskets for the year ended December 31, 2017 and covers questions 20-27. Sales 2,000 baskets at $50 per basket = $100,000 Costs: (2,000 baskets produced and sold) Variable Costs Total Cost Direct materials 16,000 Direct labor 14,000 Manufacturing overhead 16,000 Selling and Administrative Costs 10,000 Fixed Costs Manufacturing overhead 30,000 Selling and...

Analyzing and Interpreting Income Disclosures Sales information for Tesla Inc. follows. Year Ended December 31 ($...

Analyzing and Interpreting Income Disclosures Sales information for Tesla Inc. follows. Year Ended December 31 ($ thousands) 2018 2017 2016 Automotive sales $26,447,283 $14,509,078 $6,147,908 Automotive leasing 971,807 1,659,822 1,294,990 Total automotive revenues 27,419,090 16,168,900 7,442,898 Services and other 2,364,770 1,101,304 701,958 Total automotive & services and other segment revenue 29,783,860 17,270,204 8,144,856 Energy generation and storage segment revenue 2,332,866 1,897,652 199,533 Total revenues $32,116,726 $19,167,856 $8,344,389 Automotive sales revenue includes revenues related to sale of new Model S, Model...

The financial statements of Aimi Enterprise for the year ended 31 December 2018 are as follows:...

The financial statements of Aimi Enterprise for the year ended 31 December 2018 are as follows: Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2018 RM RM Sales (-) Cost of sales: Opening inventory (+) Purchases (-) Closing inventory Gross Profit (+) Revenues: Discount received Commission received (-) Expenses: Salaries and wages Repair and maintenance Net Profit 25,000 200,000 (15,000) 10,000 8,300 41,300 100,000 450,000 (210,000)...

The information that follows is for Nancy’s Name Tents for the year ended December 31, 2015...

The information that follows is for Nancy’s Name Tents for the year ended December 31, 2015 and covers questions 26-31. All per unit costs below are based on the production and sale of 3,000 name tents. The relevant range is from 0 - 3,500 units. Sales $50 sales price per name tent Costs: Variable Costs Per Tent (3,000 name tents produced and sold) Direct materials 8 Direct labor 7 Manufacturing overhead ...

At the end of the December 31 2016 fiscal year, Yin trucking corporation which follows IFRS...

At the end of the December 31 2016 fiscal year, Yin trucking corporation which follows IFRS 16, negotiated and closed a long term lease contract for newly constructed truck terminals and freight storage facilities. The buildings were erected to the company’s specifications on land owned by the company. On January 1 2017, Yin trucking corporation took possession of the leased properties and made a cash payment of 1,048,00$. Although the useful life of each terminal is 40 years, the non...

The following information is given for Aphria Farming Services Inc. for the year ended December 31,...

The following information is given for Aphria Farming Services Inc. for the year ended December 31, 2018. The account balances (all of which had their normal balance of debit or credit) at the beginning of 2018 (January 1, 2018) were as follows: Cash $ 2,200 Accounts Payable $ 23,700 Accounts Receivable $ 4,400 Income Tax Payable $ 15,100 Prepaid Supplies (Feed and Straw) $ 27,800 Interest Payable $ 2,700 Land (cost) $ 167,000 Wages Payable $ 14,200 Buildings (cost) $...

The following information is for Redwood Inc. for the year ended December 31, 2016. Redwood had...

The following information is for Redwood Inc. for the year ended December 31, 2016. Redwood had a cash and cash equivalents balance of $5,700 on January 1, 2016. Cash Received from: Customers $ 1,950 Interest on investments 225 Sale of land 125 Sale of common stock 650 Issuance of debt securities 2,050 Cash Paid for: Interest on debt 325 Income tax 85 Debt principal reduction 1,550 Purchase of equipment 4,600 Purchase of inventory 1,000 Dividends on common stock 225 Operating...