XYZ Co. has income before income tax of SR 50,000. It has a gain of SR 10,000 from a discontinued operation. Assuming a 35 percent income tax rate, how wouldXYZ Co. present theinformation on the income statement, and if it has a loss of SR 10,000 from a discontinued operation. Assuming a 35 percent income tax rate, show the changes in Income on the income statement
Q4.
Presented below are a number of statement of financial position items for ABC, Inc., for the current year, 2020.
Goodwill
SR 125,000
Accumulated Depreciation - Equipment
SR 292,000
Payroll Taxes Payable
177,591
Inventories
239,800
Bonds Payable
285,000
Rent Payable - Short-term
45,000
Cash
360,000
Taxes Payable
98,362
Land
480,000
Long-term Rental Obligations
480,000
Notes Receivable
445,700
Share Capital - Ordinary, $1 Par Value
200,000
Notes Payable to Banks
265,000
Share Capital - Preference, $10 Par Value
150,000
Accounts Payable
490,000
Prepaid Expenses
87,920
Retained Earnings
713,897
Equipment
1,470,000
Income Taxes Receivable
97,630
Trading Securities
121,000
Unsecured Notes Payable (Long-term)
1,600,000
Accumulated Depreciation - Building
270,200
Building
1,640,000
Prepare a classified statement of financial position in good form as per IFRS.
Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of trading securities are the same
Sample Solution