Blocker Enterprises, Inc

question 75

Essay

Blocker Enterprises, Inc., has two operating divisions, one manufactures farm machinery and the other manufactures office furniture. Both divisions are considered separate components as defined by SFAS No. 144. The management of Blocker Enterprises wants to focus on the manufacturing of farm machinery and accordingly adopted a formal plan to sell the office furniture division on September 20, 2011. The sale was completed on March 10, 2012. At December 31, 2011, the office furniture component was considered as held for sale.
On December 31, 2011, the company's fiscal year-end, the book value of the assets of the office furniture division was $1,000,000. On that date, the fair value of the assets, less costs to sell, was $800,000. The before-tax operating loss of the division for the year was $130,000. The company's tax rate is 40%. The after-tax income from continuing operations for 2011 was $350,000.
Prepare a partial income statement for 2011 beginning with income from continuing operations. Ignore EPS disclosures.

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Definitions:

Maximum Motivational Impact

refers to the highest level of motivation and engagement that can be achieved by implementing strategies or actions that significantly influence an individual's or group's drive and productivity.

Reinforcement Theory

A motivational concept that suggests behavior can be shaped by rewarding positive actions and discouraging negative ones.

Deficit Principle

A concept in motivational theory suggesting that a satisfied need is not a motivator of behavior; individuals are motivated to fulfill unmet needs.