On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $9.6 million. The robotics business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $7.3 million. The income from operations of the segment during 2021 was $4.3 million. Pretax income from continuing operations for the year totaled $12.3 million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.)

Our Net income is $14,175,000.

Explanation:

It is given that the sale value of assets is $9.600,000 and book value of assets is $7.300,000. Thus, gain on sale of assets is $2.300,000. Total gain before tax is the total of gain on sale of assets of $2.300,000 and gain from operations of $4.300,000. Hence, the total gain before tax is $6.600,000.

PARTICULARS                                                                        AMOUNT

Gain on sale of assets($9.600,000-$7.300,000)              $2.300,000

ADD:Gain from operation                                                     $4.300,000

Total gain before tax                                                              $6.600,000

Therefore the total gain is $6.600,000.

STEP 2

               R INDUSTRIES

               PARTIAL INCOME STATEMENT

               FOR THE YEAR ENDED DECEMBER 31 2021

Income from continuous operation before income tax          $12,300,000

Income tax expense($12.300,000×25%)                                 -$3,075,000

Income from continuous operations                                            $9,225,000

Discontinued operations

Gain from operations of discontinued component                  $6,600,000

Income tax expense($6.600,000×25%)                                     -$1,650,000

Gain on discontinued operations                                                 $4,950,000

Net income                                                                                      $14,175,000

Therefore the net income is $14,175,000

Explanation:

Income from continuing operations before income taxes is $12,300,000 and income tax expense is 25% of the income from continuing operations before income taxes. Therefore, the income from continuing operations is $9,225,000. Calculated gain from operations of discontinued component is $6,600,000 and income tax expense is 25% of the gain from operations of discontinued component. Therefore, the gain on discontinued operations is $4,950,000. Therefore, the net income is the total of income from continuing operations and gain on discontinued operations. Hence, the net income is $14,175,000.

answer; yield to maturity;