canucker
Sep 24, 2008, 12:49 PM
Discntinued Operations of a Company
Net Income of the Company was $91,000 (net of tax) of that $4,200 was from the operations of the company that are being discontinued.
Only one ASSET. - Equipment and the carrying value of the equipment is $25,000.
The sale proceeds are expected to be around $500
Estimated Fair Value of the Equipment is $10,000
Income Statement is as follows
Income from Continuing Operations $86,800
Discontinued Operations
Income from Discontinued Operations 4,200
Loss on Disposal of Equipment 20,000
-15,800
Net Income $71,000
Is this correct?
Also, how would the Asses be valued and presented on the balance sheet?
Thank you for your help
Net Income of the Company was $91,000 (net of tax) of that $4,200 was from the operations of the company that are being discontinued.
Only one ASSET. - Equipment and the carrying value of the equipment is $25,000.
The sale proceeds are expected to be around $500
Estimated Fair Value of the Equipment is $10,000
Income Statement is as follows
Income from Continuing Operations $86,800
Discontinued Operations
Income from Discontinued Operations 4,200
Loss on Disposal of Equipment 20,000
-15,800
Net Income $71,000
Is this correct?
Also, how would the Asses be valued and presented on the balance sheet?
Thank you for your help