Jonathan L.Supreme Company has two divisions,A and B.The operations and cash flows of these two divisions are clearly distinguishable.On July 1,2015,the company decided to dispose of the assets and liabilities of Division B.It is probable that the disposal will be completed early next year.The revenues and expenses of Jonathan L.Supreme Company for 2015 and for the preceding two years are as follows:
During the latter part of 2015,Jonathan L.Supreme disposed of a portion of Division B and recognized a pretax loss of $8,000 on the disposal.The income tax rate for Jonathan L.Supreme Company is 40%.
Prepare the comparative income statements for Jonathan L.Supreme Company for the years 2013,2014,and 2015.

Question

Jonathan L.Supreme Company has two divisions,A and B.The operations and cash flows of these two divisions are clearly distinguishable.On July 1,2015,the company decided to dispose of the assets and liabilities of Division B.It is probable that the disposal will be completed early next year.The revenues and expenses of Jonathan L.Supreme Company for 2015 and for the preceding two years are as follows:
  During the latter part of 2015,Jonathan L.Supreme disposed of a portion of Division B and recognized a pretax loss of $8,000 on the disposal.The income tax rate for Jonathan L.Supreme Company is 40%.
Prepare the comparative income statements for Jonathan L.Supreme Company for the years 2013,2014,and 2015.

Quizplus · Accepted Answer

The Answer of Jonathan L.Supreme Company has two divisions,A and B.The operations and cash flows of these two divisions are clearly distinguishable.On July 1,2015,the company decided to dispose of the assets and liabilities of Division B.It is probable that the disposal will be completed early next year.The revenues and expenses of Jonathan L.Supreme Company for 2015 and for the preceding two years are as follows:
  During the latter part of 2015,Jonathan L.Supreme disposed of a portion of Division B and recognized a pretax loss of $8,000 on the disposal.The income tax rate for Jonathan L.Supreme Company is 40%.
Prepare the comparative income statements for Jonathan L.Supreme Company for the years 2013,2014,and 2015.