Cheaney Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2008. The 2008 operating results for the company were as follows.
Operating revenues $12,850,000
Operating expenses 8,700,000
Operating income $ 4,150,000
Analysis discloses that these data include the operating results of the hotel chain, which were: operating revenues $2,000,000 and operating expenses $2,400,000.The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results. During the year, Cheaney suffered an extraordinary loss of $800,000 before taxes, which is not included in the operating results. In 2008, the company had other revenues and gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.
Instructions:
Complete the condensed income statement.
Click here for the solution: Cheaney Corporation owns a number of cruise ships and a chain of hotels
Showing posts with label Cheaney Corporation. Show all posts
Showing posts with label Cheaney Corporation. Show all posts
Thursday, January 14, 2016
Sunday, September 20, 2015
Cheaney Corporation owns a number of cruise ships and a chain of hotels
P14-8A Cheaney Corporation owns a number of cruise ships and a chain of
hotels. The hotels, which have not been profitable, were discontinued on
September 1, 2008. The 2008 operating results for the company were as
follows.
Operating revenues $12,850,000
Operating expenses 8,700,000
Operating income $ 4,150,000
Analysis discloses that these data include the operating results of the hotel chain, which were: operating revenues $2,000,000 and operating expenses $2,400,000. The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results. During the year, Cheaney suffered an extraordinary loss of $800,000 before taxes, which is not included in the operating results. In 2008, the company had other revenues and gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.
Instructions
Prepare a condensed income statement.
Click here for the solution: Cheaney Corporation owns a number of cruise ships and a chain of hotels
Operating revenues $12,850,000
Operating expenses 8,700,000
Operating income $ 4,150,000
Analysis discloses that these data include the operating results of the hotel chain, which were: operating revenues $2,000,000 and operating expenses $2,400,000. The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results. During the year, Cheaney suffered an extraordinary loss of $800,000 before taxes, which is not included in the operating results. In 2008, the company had other revenues and gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.
Instructions
Prepare a condensed income statement.
Click here for the solution: Cheaney Corporation owns a number of cruise ships and a chain of hotels
Tuesday, September 15, 2015
Cheaney Corporation owns a number of cruise ships and a chain of hotels
P15-8A Cheaney Corporation owns a number of cruise ships and a chain of
hotels. The hotels, which have not been profitable, were discontinued on
September 1, 2008. The 2008 operating results for the company were as
follows.
Operating revenues $12,850,000
Operating expenses 8,700,000
Operating income $ 4,150,000
Analysis discloses that these data include the operating results of the hotel chain, which were: operating revenues $2,000,000 and operating expenses $2,400,000. The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results. During the year, Cheaney suffered an extraordinary loss of $800,000 before taxes, which is not included in the operating results. In 2008, the company had other revenues and gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.
Instructions
Prepare a condensed income statement.
Click here for the solution: Cheaney Corporation owns a number of cruise ships and a chain of hotels
Operating revenues $12,850,000
Operating expenses 8,700,000
Operating income $ 4,150,000
Analysis discloses that these data include the operating results of the hotel chain, which were: operating revenues $2,000,000 and operating expenses $2,400,000. The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results. During the year, Cheaney suffered an extraordinary loss of $800,000 before taxes, which is not included in the operating results. In 2008, the company had other revenues and gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.
Instructions
Prepare a condensed income statement.
Click here for the solution: Cheaney Corporation owns a number of cruise ships and a chain of hotels
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