Business, 14.02.2020 05:28 Jasten

On May 1, Tango Co. agreed to sell the assets of its Formal Wear Division to Top Hat Inc.

The following additional facts pertain to the transaction:

The Formal Wear Division qualifies as a component of the entity according to GAAP regarding discontinued operations.

The book value of Formal Wear's assets totaled $48 million on December 31, 2021.

Formal Wear's operating income was a pre-tax loss of $10 million in 2021.

Tango's income tax rate is 25%.

Suppose that the Formal Wear Division's assets had not been sold by December 31, 2021, but were considered held for sale. Assume that the fair value of these assets was $40 million at December 31, 2021. In the income statement for the year ended December 31, 2021, Tango Co. would report discontinued operations of:-

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 03:10

Transactions that affect earnings do not necessarily affect cash. identify the effect, if any, that each of the following transactions would have upon cash and net income. the first transaction has been completed as an example. (if an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15, cash net income (a) purchased $120 of supplies for cash. –$120 $0 (b) recorded an adjustment to record use of $35 of the above supplies. (c) made sales of $1,370, all on account. (d) received $700 from customers in payment of their accounts. (e) purchased equipment for cash, $2,450. (f) recorded depreciation of building for period used, $740. click if you would like to show work for this question: open show work

Answers: 3

Answer

Business, 22.06.2019 12:00

In mexico, many garment or sewing shops found they could entice many young people to work for them if they offered clean, air conditioned work areas with high-quality locker rooms to clean up in after the work day. typically, traditional garment shops had to offer to get workers to apply for the hard, repetitive, and somewhat dangerous work. a. benchmark competitive wages b.compensating differentials c. monopoly wages d. wages based on human capital development of each employee

Answers: 3

Answer

Business, 22.06.2019 20:20

An economic theory that calls for workers to take control of factories is .

Answers: 3

Answer

Business, 22.06.2019 23:30

Miller company’s most recent contribution format income statement is shown below: total per unit sales (20,000 units) $300,000 $15.00 variable expenses 180,000 9.00 contribution margin 120,000 $6.00 fixed expenses 70,000 net operating income $ 50,000 required: prepare a new contribution format income statement under each of the following conditions (consider each case independently): (do not round intermediate calculations. round your "per unit" answers to 2 decimal places.) 1. the number of units sold increases by 15%.

Answers: 1

Answer

You know the right answer?

On May 1, Tango Co. agreed to sell the assets of its Formal Wear Division to Top Hat Inc.

Questions