Use the Following to Answer Questions

question 46

Multiple Choice

Use the following to answer questions
Spectrum Corporation sold its Specialties Division during 2010. The company's accountants determined that the division had a pre-tax loss $770,000 during 2010 prior to disposal. The sale resulted in a $235,000 gain before taxes. The company had neither extraordinary items nor any cumulative accounting adjustments. Spectrum's income from continuing operations for 2010 amounted to $23,460,000. The company's effective tax rate is 38%.
-The amount of gain(loss) from disposal of the Specialties Division that would appear on the 2010 income statement of Spectrum Corporation is:

• A)$331,700 loss
• B)$ 89,300 gain
• C)$145,700 gain
• D)$235,000 gain

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Definitions:

Future Value

The value of a current asset at a future date based on an assumed rate of growth over time.

Free-Land Era

A historical period characterized by the availability and acquisition of land for free or at minimal cost, often associated with westward expansion in the United States.

Land Demanded

The quantity of land that consumers or firms wish to purchase at various price levels, typically influenced by factors such as location, fertility, and accessibility.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers at those prices.