90.2K

Verified Solution

Link Copied!

Brighton Bookstores has two divisions: books and electronics. The electronics division had another great year in 2024 with net sales of $9.5 million, cost of goods sold of $5.75 million, operating expenses of $1.5 million, and income tax expense of $562,500. The book division did not do as well and was sold during the year. The loss from operations and sale of the book division was $750,000 before taxes and $562,500 after taxes. Required: Prepare the multiple-step income statement for Brighton Bookstores, including the proper reporting for the discontinued book division. Note: Enter your answers in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000). BRIGHTON BOOKSTORES Income Statement For the Year Ended December 31, 2024 Net sales Cost of goods sold Gross profit Operating expenses Income before tax Income tax expense Discontinued operation: $ 9,500,000 5,750,000 (1,500,000)

Brighton Bookstores has two divisions: books and electronics. The electronics division had another great year in 2024 with net sales of $9.5 million, cost of goods sold of $5.75 million, operating expenses of $1.5 million, and income tax expense of $562,500. The book division did not do as well and was sold during the year. The loss from operations and sale of the book division was $750,000 before taxes and $562,500 after taxes. Required: Prepare the multiple-step income statement for Brighton Bookstores, including the proper reporting for the discontinued book division. Note: Enter your answers in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000 )

Answer & Explanation Solved by verified expert

See Answer