contestada

Jules Inc. reported net income of $1,345,200, income from continuing operations of $1,440,000 (after tax), and a loss from a discontinued component of $384,000 (pretax) for the year ended December 31, 2020. The company’s tax rate is 25%. The decision to dispose of the component was made on June 1, 2020, and the component was sold on November 30, 2020.
Compute net proceeds from the sale of the discontinued component if the carrying value of the business compo-nent was $475,000 on November 30, 2020 (the date of sale)

Respuesta :

Based on the information given, the net proceeds from the sale of the discontinued component will be $668,200.

Net loss from discontinued operations after tax:

= $1,440,000 - $1,345,200

= $94800

Loss from discontinued operations after tax = $384,000 × (1 - 25%) = $384,000 × 0.75 = $288,000

Gain on disposal of discontinued operations after tax = $288,000 - $94800 = $193,200

Therefore, the net proceeds from the sale of the discontinued component will be:

  • Gain on disposal of discontinued operation before tax = $193,200
  • Add: Carrying value of the discontinued component = $475,000
  • Net proceeds = $668,200

Read related link on:

https://brainly.com/question/24852036

Otras preguntas