Greene Enterprises, Inc

question 13

Essay

Greene Enterprises, Inc., has two operating divisions, one manufactures machinery and the other is a trucking operation that has been used to ship finished product for the manufacturing operation. Both divisions are considered separate components as defined by SFAS No. 144. The management of Greene Enterprises wants to focus on the manufacturing operation and accordingly adopted a formal plan to sell the trucking division on November 15, 2011. The sale was completed on April 30, 2012. At December 31, 2011, the trucking 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 trucking division was $250,000. On that date, the fair value of the assets, less costs to sell, was $200,000. The before-tax operating loss of the division for the year was $140,000. The company's tax rate is 40%. The after-tax income from continuing operations for 2011 was $400,000.
Prepare a partial income statement for 2011 beginning with income from continuing operations. Ignore EPS disclosures.

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Definitions:

Republic Ideology

The political doctrine that supports a form of government where representatives are elected by the people, and there is an emphasis on the rule of law.

American Revolutionaries

Refers to the colonists of the Thirteen American Colonies who rebelled against British control during the late 18th century, leading to the American Revolutionary War.

French and Indian War

The North American conflict (1754-1763) between British and French forces, including their respective Native American allies, part of a larger series of conflicts known as the Seven Years' War.

Sugar Act

A law passed by the British Parliament in 1764 aiming to raise revenue from the American colonies by imposing a tax on sugar and molasses imported into the colonies.