Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2011, the company adopted a plan to sell the assets of the division. The actual sale was effected on December 15, 2011, at a price of $600,000. The book value of the division’s assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale.The division incurred before-tax operating losses of $130,000 from the beginning of the year through December 15. The income tax rate is 40%. Chance’s after-tax income from its continuing operations is $350,000.Required: Prepare an income statement for 2011 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round EPS answers to 2 decimal places. Omit the “$” sign in your response.)CHANCE COMPANYPartial Income StatementFor the Year Ended December 31, 2011 ————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————
Plagiarism-free and delivered on time!
We are passionate about delivering quality essays.
Our writers know how to write on any topic and subject area while meeting all of your specific requirements.
Unlike most other services, we will do a free revision if you need us to make corrections even after delivery.
How it Works
Place an order
Fill out the order form.
Attach any custom instructions that is required to complete your order.
Pay online safely.
The order form will redirect you to a payment page.
Receive Order via Email
Once the order is complete, we’ll send it via the email provided on the order form.