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Neo, Tutor
Category: Homework
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Experience:  BS Accounting
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For the year ending December 31 2011 Mircron Corp had income

Customer Question

For the year ending December 31 2011 Mircron Corp had income from continuing operations befroe taxes of 1,200,000 before considering the following trans, and events
All of the items described below are before taxes and the amoints should be considered material.
1, During 2011 one of microns fact was damadged in a a result the firm recognized a loss of 800,000. The event was considered unusual and infrequent
2. In November, Micron sold it's waffle house restaurant chain that qualitfied as a component of an entity. THe company had adopted a plan to sell the chain in May of 11 the Operating income of chain from jan 1, 11 to november was 160,000. and the loss on sale of the chains assets was 300,000.
3. In 2011 Micron sold one of its six factories for 1,200,000. At the time of the sale the factory had a carrying value of 1,100,000 the Factory was not considered a component of the entity.
4, in 2009 Micron accountatnt omitted the annual adjustment for patent amortization expesne of 120,000. The error was not discovered until 2011.

Prepare Microns income statemnet beginning with incoe from continueing operations before taxes for the year ended December 31,2011. Assume inocme tax rate 30% ignore disclosures.
Briefly explain the motivation for segregating certain income statement evens from income from continuing operations
Submitted: 6 years ago.
Category: Homework
Expert:  Neo replied 6 years ago.

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