Question

Cendant Corporation's results for the year ended December 31, 2021, include the following material items: Sales...

Cendant Corporation's results for the year ended December 31, 2021, include the following material items:

Sales revenue 6,350,000
Cost of goods sold 3,750,000
Selling and administrative expenses 1,130,000
Loss on sale of investments 193,000
Loss on discontinued operations 482,000
Loss on impairment from continuing operations 69,000

Multiple Choice:

A) $726,000.

B) $1,208,000.

C) $1,267,700.

D) $1,277,000.


Cendant Corporation's income from continuing operations before income taxes for 2021 is:

Business   Accounting   
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Answer #1
Cendant Corporation's
Income Statement
At December 31, 2021
Revenues
Sales revenue 6,350,000
Less:Cost of goods sold -3,750,000
Gross profit 2,600,000
Less: Selling and Administrative expenses -1,130,000
Operating Profit 1,470,000
Other expenses:
Loss on sale of investments -193,000
Loss on impairment from continuing operations -69,000
Income from continuing operations $1,208,000

Cendant Corporation's income from continuing operations before income taxes for 2021 is $1,208,000.

Correct option is B.

Kindly comment if you need further assistance.

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