Chapter 4 The Income Statement and Statement of Cash Flows27

Chapter 4 The Income Statement and Statement of Cash Flows27

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Exercise 4-8 Pretax income from continuing operations $14,000,000 Income tax expense (5,600,000 ) Income from continuing operations 8,400,000 Less: Net income 7,200,000 Loss from discontinued operations $1,200,000 $1,200,000 ÷ 60%* = $2,000,000 = before tax loss from discontinued operations.
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Unformatted text preview: *1-tax rate of 40% = 60% Pretax income of division $4,000,000 Add: Loss from discontinued operations 2,000,000 Impairment loss $6,000,000 Fair value of divisions assets $11,000,000 Add: Impairment loss 6,000,000 Book value of divisions assets $17,000,000...
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This note was uploaded on 01/08/2011 for the course -2 20101 taught by Professor Georgesanchez during the Spring '10 term at USC.

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