Question

Please give us the process and reasons for solving the problem

1.

A company reports the following amounts at the end of the current year: Sales revenue $860,000 Selling expenses 250,000 Gain on the sale of land 30,000 Interest expense 10,000 Cost of goods sold 520,000 Under normal circumstances (ignoring tax effects), permanent earnings would be computed as ______. A. $90,000 B. $110,000 C. $80,000 D. $50,000

2.

On August 1, 2022, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to IFRS regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2023. On January 31, 2023, Rocket's financial year-end, the following information relative to the discontinued division was accumulated: Operating loss, February 1, 2022 to January 31, 2023 $115,000 Estimated operating losses, February 1 to June 30, 2023 80,000 Impairment of division assets as of January 31, 2023 10,000 In its statement of profit or loss for the year ended January 31, 2023, Rocket would report a before-tax loss on discontinued operations of ______. A. $115,000 B. $195,000 C. $65,000 D. $125,000

3.

On October 28, 2022, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity according to IFRS regarding discontinued operations and was properly classified as held for sale on December 31, 2022, the end of the company's fiscal year. The division's loss from operations for 2022 was $2,000,000. The division's book value and fair value less cost to sell on December 31 were $3,000,000 and $2,500,000, respectively. What before-tax amount(s) should Mercedes report as loss on discontinued operations in its 2022 statement of profit or loss? A. $2,000,000 loss B. $2,500,000 loss C. No loss would be reported. D. $500,000 impairment loss included in continuing operations and a $2,000,000 loss from discontinued operations

26.

Misty Company reported the following before-tax items during the current year: Sales revenue $600 Selling and administrative expenses 250 Restructuring charges 20 Loss on discontinued operations 50 Misty's effective tax rate is 40%. What is Misty's net profit for the current year? A. $148 B. $168 C. $112 D. none of these

4

.

Cendant Corporation's results for the year ended December 31, 2022 include the following material items: Sales revenue $6,200,000 Cost of goods sold 3,800,000 Selling and administrative expenses 1,300,000 Loss on sale of investments 200,000 Loss on discontinued operations 500,000 Loss on impairment from continuing operations 80,000 Cendant Corporation's profit from continuing operations before income taxes for 2022 is ______. A. $900,000 B. $880,000 C. $820,000 D. $320,000

Answer 1