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Solution Manual Chapter 4 Assigned Problems

# Solution Manual Chapter 4 Assigned Problems - CHAPTER 4...

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CHAPTER 4 QUESTIONS 4–43. Spiker Manufacturing Inc. Income Statement (Partial) For the Fiscal Year Ended July 31, 2008 Income from continuing operations before income taxes ...................... \$1,024,000 (a) Incomes taxes ............................................................................................. 307,200 (b) Income from continuing operations ......................................................... \$ 716,800 Extraordinary gain (net of income taxes of \$36,300) .............................. 84,700 (c) Loss from disposal of a business component (net of income tax savings of \$39,000) .................................................................................. (91,000 )(d) Net income .................................................................................................. \$ 710,500 COMPUTATIONS: (a) \$1,015,000 – \$121,000 + \$130,000 = \$1,024,000 (b) \$1,024,000 × 0.30 = \$307,200 (c) \$121,000 × 0.30 = \$36,300; \$121,000 – \$36,300 = \$84,700 (d) \$130,000 × 0.30 = \$39,000; \$130,000 – \$39,000 = \$91,000 Spiker Manufacturing Inc. Retained Earnings Statement For the Fiscal Year Ended July 31, 2008 Retained earnings, August 1, 2007 ........................................................... \$2,520,000 Less: Prior-period adjustment (net of income tax savings of \$27,000). 63,000 (a) Adjusted retained earnings, August 1, 2007 ............................................ \$2,457,000 Add: Net income ......................................................................................... 710,500 Retained earnings, July 31, 2008 .............................................................. \$ 3,167,500 (a) \$90,000 × 0.30 = \$27,000; \$90,000 – \$27,000 = \$63,000 103

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104 Chapter 4 4–44. Radiant Cosmetics Inc. Income Statement (Partial) For the Year Ended December 31, 2008 Income from continuing operations before income taxes ............... \$210,000 Income taxes (\$82,000 + \$20,000 \$8,000 \$10,000) ...................... 84,000 Income from continuing operations .................................................. \$126,000 Discontinued operations: Loss from operations of discontinued cosmetics
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Solution Manual Chapter 4 Assigned Problems - CHAPTER 4...

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