Sour Soup Corporation operates several stores in British Columbia (Vancouver, Victoria, Kamloops, Penticton and Prince George).

Sour Soup Corporation operates several stores in British Columbia (Vancouver, Victoria, Kamloops,

Penticton and Prince George). The restructuring of its organization on November 20, 2018 has led to

the decision to sell its Prince George store. In preparing financial statements at December 31, 2018, the following information was made available:

o  The Prince George operation incurred a loss of $283,500 for the 2018 calendar year, including $225,000 for the period January 1 to November 20, 2018.

o  Estimated costs to sell are $300,000.

o  At December 31, 2018, the fair value of the Prince George assets is estimated at $7 million and the carrying (book) value is $7.3 million.

o  The combined provincial and federal income tax rate is 30%.

o It is estimated that the operation will lose an additional $250,000 before it is sold.

1.      The Prince George operation qualifies for reporting as a discontinued operation. What amount should be reported in the discontinued operations section of Sour Soup’s 2018 income statement?

2.      In early 2019, the Prince George operation is sold for $8.5 million, with actual costs to sell of $400,000. Additional income tax expense related to the sale is $500,000. The operation lost an additional $150,000 before it was sold. What amount should be reported in the discontinued operations section of Sour Soup’s 2019 income statement? 

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more