401 Lab Quiz #3
8:00 – 9:15am
9:30 – 10:45am
For Mortenson Company, the following information is available:
Cost of goods sold
Income tax expense
In Mortenson’s multiple-step income statement, gross profit
should not be reported
should be reported at $27,000.
should be reported at $80,000.
should be reported at $85,000.
Manning Company has the following items: write-down of inventories, $360,000;
loss on disposal of Sports Division, $555,000; and loss due to strike, $339,000.
Ignoring income taxes, what total amount should Manning Company report as
During 2012, Lopez Corporation disposed of Pine Division, a major component of
its business. Lopez realized a gain of $1,800,000, net of taxes, on the sale of
Pine's assets. Pine's operating losses, net of taxes, were $2,100,000 in 2012.