accounting

posted by .

On September 1, 2013, Jacob Furniture Mart enters into a tentative agreement to sell the assets of its office equipment division. This division qualifies as a component of the entity according to GAAP regarding discontinued operations. The division's contribution to Jacob's operating income for 2013 was a $3 million loss before taxes. Jacob has an average tax rate of 30%. Assume that Jacob had not yet sold the division's assets by the end of 2013. Further, assume that the fair value less costs to sell of the division's assets at December 31, 2013, was $24 million and was expected to remain the same when the assets are sold in 2014. The book value of the division's assets was $19 million at the end of the year. Under these assumptions, what would Jacob report in its 2013 income statement regarding the office equipment division? Explain where this information would be presented.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Transfer Pricing

    The per unit cost details are as followers: Machining Finishing Transferred in cost N/A $27 Variable cost $24 9.00 Allocated fixed costs 3.00 13.50 Full cost per unit 27.00 49.50 An external supplier has offered to supply a product …
  2. algebra

    what is the answer for x squared + 9 divided by -x-4?
  3. Geography

    22. Most of the countries on the Balkan Peninsula have a a. Mediterranean climate b. humid continental climate c. highland climate d. tundra climate C?
  4. Algebra

    Factor find the zeros x^5-9x^3 Find the quotient and remainder using long division (x^3-x^2-2x+6)/(x-2) Use sythetic division and remainder therem to evalulate P(c) Let P(x)= 6x^7-40x^6+16x^5-200x^4-60x^3-69x^2+13x-… *Calculate P(7) …
  5. Calculus

    Let f(x)=(2x^3-x^2+2x+1)/(x^2+1). What is the equation of the oblique asymptote of f(x)?
  6. Science* Please Help Me !

    How would cell division help heal a broken bone?
  7. Quantitative analysis

    Input Output Model The Xavier Corporation has a digital electronics division and a plastics division. For each dollar's worth of plastics produced, the plastics division uses $.10 worth ofplastic and $.20 worth of electronics. For …
  8. Accounting

    Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused …
  9. math

    The annual budget projection for a large manufacturing firm includes: Division A $24,345,500 Division B $13,927,750 Division C $752,000 Division D $695,800 Estimate the total budget in millions of dollars.
  10. math

    how do you rewrite the problem so the divisor is a whole number 48.4 (division sign)0.4 8.19 (division sign)0.09 3.7 (division sign) 2.1 2.39 (division sign) 0.05 45.218(division sign)0.23 233.58(division sign)10.2

More Similar Questions