The following income statement items appeared on the adjusted trial balance of small & Tall Inc for the year ended December 31, 2016(sin 000s): sales revenue, $19, 900; cost of goods sold, $8, 500; selling expenses, $1.530; general and administrative expenses, $930; unearned revenue, $1, 400, Interest Revenue $200; interest expense, $310. Income taxes have not yet been recorded.
The company's income tax rate is 40% on all items of income or loss. The company had 20o,000 shares outstanding at the beginning of the year and 350,000 at the end of the year.
These revenue and expense items appear in the company's income statement every year. The company s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2016 ($ in 000s)
All transactions are material in amount.
1. Investments were sold during the year at loss of $550. Small & Tall Inc. also had unrealized losses of $750 for the year on investments.
2. One of the company's factories was closed during the year. The company was forced to write down its inventory and sold it for $775 This event is considered unusual and infrequent in nature. The inventory had value of $900.
3. During the year, Small &T all completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP the division had incurred a loss from operations of $2, 570 in 2016 prior to the sale (only $1, 225 of the loss was from the date actual sale date). Its assets had a book value of $2, 200 and were sold for $780.
4. Foreign currency translation Gains for the year totaled $370.
Solve For:
Income from continuing operations, net of tax
Income for Discontinued operations (after tax)
Other Comprehensive Income, net of tax
What is Net Income & Total Comprehensive Income