Intermediate Accounting教科书上习题答案4(by J David Spiceland)

Brief Exercise 4-5

MEMORAX COMPANY Partial Income Statement For the Year Ended December 31, 2011 Income before income taxes and extraordinary item .......... $ 790,000 Income tax expense* .......................................................... 316,000 Income before extraordinary item ...................................... 474,000 Extraordinary item: Loss from earthquake, net of $208,000 tax benefit ......... (312,000) Net income ........................................................................... $ 162,000

*$790,000 x 40%

Brief Exercise 4-6

WHITE AND SONS, INC. Partial Income Statement For the Year Ended December 31, 2011 Income before income taxes and extraordinary item .......... Income tax expense* .......................................................... Income before extraordinary item ...................................... Extraordinary item: Loss from earthquake, net of $160,000 tax benefit ......... Net income ........................................................................... Earnings per share: Income before extraordinary item ....................................... Loss from earthquake ......................................................... Net income ..........................................................................

$ 850,000 340,000 510,000 (240,000) $ 270,000 $ 5.10 (2.40) $ 2.70 *$850,000 x 40%

Note: Restructuring costs, interest revenue, and loss on sale of investments are included in income before income taxes and extraordinary item.

Brief Exercise 4-7

CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2011

Income from continuing operations before income taxes ... $ 5,800,000 Income tax expense* ........................................................... 1,740,000 Income from continuing operations ................................... $ 4,060,000 Discontinued operations: Loss from operations of discontinued component (including gain on disposal of $2,000,000)** .......................... (1,600,000) Income tax benefit ............................................................ 480,000 Loss on discontinued operations ...................................... (1,120,000) Net income ........................................................................... $ 2,940,000

* $5,800,000 x 30%

** Loss from operations of discontinued component: Gain on sale of assets Operating loss

Total before-tax loss

$ 2,000,000 ($10 million less $8 million) (3,600,000) $(1,600,000)

Brief Exercise 4-8

CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2011 Income from continuing operations before income taxes ... Income tax expense* ........................................................... Income from continuing operations ................................... Discontinued operations: Loss from operations of discontinued component** ...... Income tax benefit ............................................................ Loss on discontinued operations ...................................... Net income ...........................................................................

$ 5,800,000 1,740,000 $ 4,060,000 (3,600,000) 1,080,000 (2,520,000) $ 1,540,000 * $5,800,000 x 30% ** Includes only the operating loss. There is no impairment loss.