The Nikel Company Sold Its Cattle Ranching Component on June

question 6

Multiple Choice

The Nikel Company sold its cattle ranching component on June 30, 2010, for a gain of $1, 000, 000.From January through June, the component had sustained operating income of $300, 000.The income tax rate is 30%.How should Nikel report the income and the sale on its income statement?

• A)as $300, 000 operating income and a $1, 000, 000 gain on sale of component
• B)as a $1, 300, 000 gain in operating income
• C)as a net of tax gain of $910, 000 after income from continuing operations
• D)as $210, 000 operating income and a $700, 000 gain on sale of the component shown before extraordinary items

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Definitions:

Gap Junctions

Specialized intercellular connections that facilitate the direct transfer of ions and molecules between the cytoplasm of adjacent cells, enabling communication and coordination.

Hydrostatic Skeleton

A support structure in many soft-bodied animals, such as jellyfish and earthworms, that is maintained by the fluid pressure within their body cavities.

ATP Synthesis

The process of producing ATP, the cell's primary energy carrier, through cellular respiration or photosynthesis.

Epiphysis

The end part of a long bone, which is originally growing separately from the shaft but later fuses with it through ossification during growth.