Company had a net income after tax of P3,500,000 for the year ended December 31, 2021 after giving effect to the following events which occurred during the year. The decision was made on May 31 to discontinue the bottles manufacturing segment. The bottle manufacturing segment was sold on June 30. Operating profit from January 1 to May 30 for the bottle manufacturing segment amounted to P950,000 before tax benefit. Bottle manufacturing equipment with a book value of P1,900,000 was sold for P1,150,000. The tax rate was 30%. For the year ended December 3

Company had a net income after tax of P3,500,000 for the year ended December 31, 2021 after giving effect to the following events which occurred during the year. The decision was made on May 31 to discontinue the bottles manufacturing segment. The bottle manufacturing segment was sold on June 30. Operating profit from January 1 to May 30 for the bottle manufacturing segment amounted to P950,000 before tax benefit. Bottle manufacturing equipment with a book value of P1,900,000 was sold for P1,150,000. The tax rate was 30%. For the year ended December 3

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...

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