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#1 ramzacless

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Posted 12 August 2013 - 02:51 PM

Can someone tell me the below example belong to which category of income statement and the calculate the result 

extraordinary, unusual, discontinued operation, operation income and etc

 

The income tax rate is 30%,

 

1. The company agree to pay $5000 to settle a strike, its cost is slightly less than the  strike in 2 years ago.

 

2. The company use its old car to trade with another new car.  The book value for its old car is $35,000, The fair value is $40,000. The new car has fair value of $60,000, the company record its book value for $50,000. What is the amount of gain or loss for this trade?

 

3.the company has a lawsuit with its employee.  the employee suit for $1 million. the company and employee reach an agreement to settle the lawsuit by paying $30,000.  The company didn't record any loss for this lawsuit last year.

 

4. the company is going to disposal one of its product line.  The income for this product line is $10,000.  The book value of this product line is $30,000, the company sell it for $35,000. (for this question are we going to include the income of $10,000, or we just calculate the gain or loss for the transaction)

 

Thanks for your help in advance!



#2 Ali Raza Hashmi

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Posted 08 November 2013 - 04:08 PM

1) Company Book an Expenses of AED:5000 

2)Gain on disposal of Car: AED:15000

3)Unusual Loss on Law suit: AED:30000

4) Gain on disposal of Product Line: AED:15000