HW_1 Income Statement

HW_1 Income Statement - Homework #1: Income Statement (Ch...

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Homework #1: Income Statement (Ch 4) Problem 1: Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%. Required : Prepare a multiple-step income statement with earnings per share disclosure. Problem 2: Broadriver, Inc. prepares an annual combined statement of income and comprehensive income. The following situations occurred during the company's 2011 fiscal year: 1. A manufacturing division recognized a loss on the sale of investments. 2. A division was sold that qualifies as a separate component according to GAAP regarding discontinued operations.
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3. Broadriver changed its depreciation method from the double-declining-balance method to the straight-line method. 4. Due to obsolescence, Broadriver engaged in the manufacture of high-technology products incurred a loss on the write-down of inventory. 5. The controller discovered an error in the calculation of 2010's revenue Required: For each situation, identify the appropriate reporting treatment. Consider each event to be
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This note was uploaded on 02/22/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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HW_1 Income Statement - Homework #1: Income Statement (Ch...

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