![devikapal101](/avatars/41215.jpg)
devikapal101
01.04.2021 •
Business
On December 30, 2017, the Board of Directors of Blue Manufacturing, Inc. committed to a plan to discontinue the operations of its Owl division. Blue estimated that Owl's 2018 operating loss would be $750,000 and that the fair value of Owl's facilities was $450,000 less than their carrying amounts. The estimate for the 2018 operating loss turned out to be correct. Owl's 2017 operating loss was $1,000,000, and the division was actually sold for $400,000 less than its carrying amount in 2018. Blue's effective tax rate is 35%. In its 2017 income statement, what amount should Blue report as loss from discontinued operations
Solved
Show answers
More tips
- H Health and Medicine How to Get Rid of Dandruff?...
- S Sport How to Choose Tennis Rackets?...
- H Health and Medicine AKDS Vaccination: Ensure Your Child s Safety...
- H Health and Medicine Naskol ko Opasen Ukus Kleshcha i Kak Ego Raspoznat...
- C Computers and Internet How to Delete Your Account on Odnoklassniki...
- H Health and Medicine What to Do When Your Jaw Locks Up?...
- G Goods and services What Are the Most Popular Services?...
- P Philosophy How did the concept of module arise in computer science?...
Answers on questions: Business
- H History 1. Under the convoy system, a fleet of destroyers protected merchant ships in the Atlantic Ocean from German U-Boat attacks,...
- B Business Andrew is the prom committee chairman. he is at the prom and realizes that the meal delivered to the attendees was steak and not chicken. andrew makes the catering manager...
- H History When summarizing a supreme court dissent what is most important to include?...
- H History After the victory at Saratoga. Ben Franklin was able to - o help the colonists regain possession of New Jersey o encourage the French to support the colonists otell American...
Ответ:
$942,500
Explanation:
Calculation to determine what amount should Blue report as loss from discontinued operations
Using this formula
Loss from discontinued operations=[(Operating loss+Fair value)*Tax rate]
Let plug in the formula
Loss from discontinued operations=[($1,000,000+ $450,000)* (100% - 35% tax rate)]
Loss from discontinued operations=$1,450,0000*65%
Loss from discontinued operations= $942,500
Therefore what amount should Blue report as loss from discontinued operations is $942,500
Ответ: