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Operating Expenses:: Reed Company

The 2023 statement of profit or loss for Micron Corporation shows profit from continuing operations of $1,040,000. Discontinued operations resulted in a loss of $112,000, including a profit of $160,000 from operations but a $300,000 loss on disposal, partially offset by a $28,000 tax benefit. The net profit for 2023 was $928,000.

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45 views8 pages

Operating Expenses:: Reed Company

The 2023 statement of profit or loss for Micron Corporation shows profit from continuing operations of $1,040,000. Discontinued operations resulted in a loss of $112,000, including a profit of $160,000 from operations but a $300,000 loss on disposal, partially offset by a $28,000 tax benefit. The net profit for 2023 was $928,000.

Uploaded by

Sarah Nelle Pasao
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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REED COMPANY

Statement of Profit or Loss


for the Year Ended December 31, 2023

Years Ended December 31


2023 2022
Sales revenue $4,000,000 $3,000,000
Cost of goods sold -2,570,000 -1,680,000
Gross profit 1,430,000 1,320,000

Operating expenses:
Selling -340,000 (282,00)
Administrative -750,000 -635,000
Inventory write-down -35,000 ---------
Loss due to fire -50,000 ---------
Total operating expenses -1,175,000 -917,000
Operating profit 255,000 403,000

Other income (expense):


Interest revenue 150,000 140,000
Interest expense -200,000 -200,000
Total other income (expense),
-50,000 -60,000
net
Profit before income taxes 205,000 343,000
Income tax expense -41,000 -68,600

Profit from continuing operation $164,000 $274,400

Discontinued operations:

Profit (Loss) from operations of


discontinued component (including -10,000 110,000
loss on disposal of 50,000)

Income tax benefit(expense) 2,000 -22,000

Loss on discontinued operations -8,000 88,000

Net profit/(loss) 156,000 362,000

Earnings per share:


Profit from continuing operations 0.55 0.91
Profit (Loss) from discontinued
-0.03 0.29
operations

Net Profit 0.52 1.2


Requirement 1
JACKSON HOLDING COMPANY

Partial Statement of Profit or Loss

for the Year Ended December 31, 2023

Years Ended December 31


2023 2022

Profit from continuing operation


$2,200,000 $700,000
before income tax
Income Tax expense -440,000 -140,000
Profit from continuing operation 1,760,000 560,000
Discontinued operations:

Profit (Loss) from operations of 400,000 300,000


discontinued component, net of tax

Gain on disposal, net of tax 6,000,000 ---------


Tax (expense) benefit -200,000 -60,000
Profit (Loss) on discontinued
800,000 240,000
operations
Net profit/(loss) 2,560,000 800,000

Requirement 2
JACKSON HOLDING COMPANY
Partial Statement of Profit or Loss
for the Year Ended December 31, 2023

Years Ended December 31


2023 2022
Profit from continuing operation
$2,200,000 $700,000
before income tax
Income Tax expense -440,000 -140,000
Profit from continuing operation 1,760,000 560,000
Discontinued operations:
Profit (Loss) from operations of
400,000 300,000
discontinued component, net of tax

Tax (expense) benefit -80,000 -60,000


Profit (Loss) on discontinued
320,000 240,000
operations
Net profit/(loss) 2,080,000 800,000

The 2023 income from discontinued operations would include only the profit from its
operations of $400,000 and no gain shall be recognized for the division until it is sold the
following year

Requirement 3
JACKSON HOLDING COMPANY
Partial Statement of Profit or Loss
for the Year Ended December 31, 2023

Years Ended December 31


2023 2022
Profit from continuing operation
$2,200,000 $700,000
before income tax
Income Tax expense -440,000 -140,000
Profit from continuing operation 1,760,000 560,000
Discontinued operations:

Profit (Loss) from operations of


320,000 240,000
discontinued component, net of tax

Impairment Loss, net of tax benefit -4,000,000 ---------

Profit (Loss) on discontinued


-80,000 240,000
operations
Net profit/(loss) 1,680,000 800,000

The 2023 income from discontinued operations would include the profit from operations of
$400,000 as well as an impairment loss of $500,000
31
2022

700,000

140,000
560,000

240,000

---------

240,000

800,000

erations of
MICRON CORPORATION

Partial Statement of Profit or Loss

for the Year Ended December 31, 2023

Profit from continuing operations before income taxes $1,300,000

Income tax expense -260,000


Profit from continuing operations $1,040,000
Discontinued operations:

Profit (Loss) from operations of discontinued component 160,000

Loss disposal, -300,000


Income tax benefit (expense) 28,000
Profit (Loss) on discontinued operations -112,000
Net profit/(loss) 928,000

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