Mayordomo,Inc

question 76

Essay

Mayordomo,Inc.,has several operating divisions.In September 2014,the management of Mayordomo decided on a formal plan to sell one of its divisions.This division is considered a separate component as defined by SFAS No.144.
The sale was completed on December 10,2014,at which time the division was sold for $800,000.The book value of the assets of the division was $1,000,000.The before-tax operating loss of the division for the period January 1,2014 to the date of disposal was $130,000.The company's tax rate is 40%.The after-tax income from continuing operations for 2014 was $350,000.
Prepare a partial income statement for 2014 beginning with income from continuing operations.Ignore EPS disclosures.

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Definitions:

Descartes

A French philosopher, mathematician, and scientist, often referred to as the father of modern philosophy, known for his statement, "I think, therefore I am."

Spinoza

A 17th-century Dutch philosopher known for his works on ethics, politics, and religion, emphasizing the importance of rationalism and monism.

Idealist Viewpoints

Idealist Viewpoints are philosophical stances that prioritize the mental, spiritual, or ideal realm over the physical or empirical.

Berkeley

An Irish philosopher who proposed idealism, the theory that reality exists only in the minds of individuals and that what we perceive as physical objects are merely collections of ideas.