【正文】 ?The McGrawHill Companies, Inc., 1999 Slide 129 Irwin/McGrawHill Discontinued Operations Example Lo s s on s e gm e nt op e r a t i on s ( 1 5 0 , 0 0 0 )$ Le s s : Ta x be ne f i t s ( $ 1 5 0 , 0 0 0 ? 3 0 % ) 4 5 , 0 0 0 N e t l os s ( 1 0 5 , 0 0 0 )$ Lo s s on di s po s a l of a s s e t s ( 1 0 0 , 0 0 0 )$ Le s s : Ta x be ne f i t s ( $ 1 0 0 , 0 0 0 ? 3 0 % ) 3 0 , 0 0 0 N e t l os s ( 7 0 , 0 0 0 )$ ?The McGrawHill Companies, Inc., 1999 Slide 1210 Irwin/McGrawHill I n c o m e f r o m c o n t i n u i n g o p e r a t i o n s 3 5 0 , 0 0 0$ D i s c o n t i n u e d o p e r a t i o n s : L o s s o n o p e r a t io n s ( n e t o f t a x b e n e f it o f $ 4 5 ,0 0 0 ) ( 1 0 5 , 0 0 0 ) L o s s o n d is p o s a l o f a s s e t s ( n e t o f t a x b e n e f it s o f $ 3 0 ,0 0 0 ) ( 7 0 , 0 0 0 ) E a r n i n g s b e f o r e e x t r a o r d i n a r y i t e m 1 7 5 , 0 0 0$ Ine Statement Presentation: Discontinued Operations Example ?The McGrawHill Companies, Inc., 1999 Slide 1211 Irwin/McGrawHill ?Material in amount. ?Gains or losses that are both unusual in nature and not expected to recur in the foreseeable future. ?Reported of related taxes. Extraordinary Items ?The McGrawHill Companies, Inc., 1999 Slide 1212 Irwin/McGrawHill During 2023, Apex Co. experienced a loss of $75,000 due to an earthquake at one of its manufacturing plants in Nashville. This was considered an extraordinary item. The pany reported ine before extraordinary item of $175,000. All gains and losses are subject to a 30% tax rate. How would this item appear on the 2023 ine statement? Extraordinary Items Example ?The McGrawHill Companies, Inc., 1999 Slide 1213 Irwin/McGrawHill Extraordinary Items Example E x t r a or di na r y Los s ( 7 5 , 0 0 0 )$ Le s s : Ta x B e ne f i t s ( $ 7 5 , 0 0 0 ? 3 0 % ) 2 2 , 5 0 0 N e t Los s ( 5 2 , 5 0 0 )$ ?The McGrawHill Companies, Inc., 1999 Slide 1214 Irwin/McGrawHill E x t r a or di na r y Los s ( 7 5 , 0 0 0 )$ Le s s : Ta x B e ne f i t s ( $ 7 5 , 0 0 0 ? 3 0 % ) 2 2 , 5 0 0 N e t Los s ( 5 2 , 5 0 0 )$ E a r ni ngs be f or e e x t r a or di na r y i t e m 1 7 5 , 0 0 0$ E x t r a or di na r y Los s : E a r t hqua k e l os s ( ne t of t a x be ne f i t of $ 2 2 , 5 0 0 ) ( 5 2 , 5 0 0 ) E a r ni ngs be f or e c um ul a t i v e e f f e c t of a c ha nge i n a c c ount i ng pr i nc i pl e 1 2 2 , 5 0 0$ Ine Statement Presentation: Extraordinary Items Example ?The McGrawHill Companies, Inc., 1999 Slide 1215 Irwin/McGrawHill T y p e o f A c c o u n t i n g C h a n g e D e f i n i t i o nC h a n g e i n A c c o u n ti n g Pr i n c i p l eR e p l a c e s o n e G A A P w i th a n o th e rC h a n g e i n A c c o u n ti n g Es ti m a teR e v i s i o n o f a n e s ti m a te b e c a u s e o f n e w i n fo r m a ti o n o r n e w e x p e r i e n c eAccounting Changes ?The McGrawHill Companies, Inc., 1999 Slide 1216 Irwin/McGrawHill Change in Accounting Principle ? Occurs when changing from one GAAP method to another GAAP method. ? Make a catchup adjustment known as the cumulative effect of a change in accounting principle. ? The cumulative effect is reported of taxes and after extraordinary items. ?The McGrawHill Companies, Inc., 1999 Slide 1217 Irwin/McGrawHill Change in Accounting Principle Example Also in 2023, Apex Co. decided to change from the doubledeclining balance to the straightline method for depreciation. The effect of this change is an increase in ine of $65,000. Apex reported ine before cumulative effect of an accounting change of $122,500 during the year. All items of ine are subject to a 30% tax rate