A 10,000,000 0.3053435115 1,750,000 0.

3017241379
B 8,000,000 0.2442748092 1,400,000 0.2413793103
C 6,000,000 0.1832061069 1,200,000 0.2068965517
D 3,000,000 0.09160305344 550,000 0.09482758621
E 4,250,000 0.1297709924 675,000 0.1163793103
F 1,500,000 0.04580152672 225,000 0.03879310345
32,750,000 5,800,000

c
b
a
a
d
20,000,000 0.2962962963
17,500,000 0.2592592593
12,500,000 0.1851851852
7,500,000 0.1111111111
7,000,000 0.1037037037
3,000,000 0.04444444444
67,500,000
CHAPTER 9 INTERIM FINANCIAL REPORTING
PROBLEM 3:
1. Canine Corporation STATEMENT OF PROFIT OR L

Canine Corporation
STATEMENT OF PROFIT OR LOSS
For the Year end December 31, 20x1

Revenue P 9,000,000
Cost of goods sold (5,000,000)
Gross profit 4,000,000
Other operating expenses (2,800,000)
Property tax expenses (250,000)
Impairment loss (600,000)
Loss P 350,000

MIDDAY CO.'s
estimated annual profit before tax 1,200,000
Operating loss carryforward 300K / 30% -1,000,000
total 200,000
30%
estimated annual income tax expense 60,000
divide by: estimated annual profit before tax 1,200,000
average income tax rate 5%

profit before tax 1st qtr. 350,000

average income tax rate 5%
income tax expense 17,500
PROBLEM 4 PROBLEM 5
D C B
C B C
A C B
D C C
D A B
C
C
D
C
B
 Feline Corporation
Feline Corporation
TEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Year end December 31, 20x1

Revenue 9,000,000
Cost of goods sold -5,000,000
Gross Profit 4,000,000
Other Operating Expenses -2,800,000
Insurance Expense 60K x 3/24 -7,500
Commission Expense -80,000
Unrealized gain 1.45M-1.5M -50,000
Profit from continuing operations 1,062,500
Discontinued Operations 2.8M-3M+800K 1,000,000
Profit for the year/ other comprehensive incom 62,500

arf-arf Co.
estimated annual profit before tax
operating loss carryforward
total

estimated annual income tax expense

divide by: estimated annual profit
average income tax rate

profit before tax 1st qtr

average tax rate
income tax expense
70K recognized immediately; 100K x 1/4= 25,000
dep expense (60k x 6/12) 30K + salaries expense bonus (120,000 x 6/12) 60,000 = 90,000
property tax (180K x 1/4) 45K + cost benefitting the remainder of the year (300K x 1/3) 100,000 = 145,000

-20K- 30K +90K =40,000

200,000 x 25% = 50,000

estimated annual profit before tax 1,200,000

operating loss carryforward 120k/ 30% -400,000
total 800,000
30%
estimated annual income tax expense 240,000
divide by estimated annual profit before tax 1,200,000
average income tax rate 20%

1Q 2Q 3Q

profit before taxes 350,000 200,000 400,000

average tax rate 20% 20% 20%
income tax expense 70,000 40,000 80,000
 Puppy Company
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Year end December 31, 20x1

Revenue
Cost of goods sold
Gross profit
other operating expenses
Employee Benefits
Depreciation Expense
Interest income
Profit for the year

Historical cost 1,000,000

Accumulated Depreciation -540,000
Carrying amount 1/1/x1 460,000

historical cost 1,000,000

residual value 100,000
Depreciable amount 900,000
800,000
-100,000 depreciation 1st 900K x5/15 300,000
700,000 depreciation 2nd 900K x 4/15 240,000
30% accumulated Depreciation 540,000
210,000 Depreciation 20x1 900K x 3/15 180,000
800,000 x 3/12
26.25% Depreciation 1st qtr 45,000

280,000
26.25%
73,500
00,000 = 145,000
py Company
COMPREHENSIVE INCOME
d December 31, 20x1

9,000,000
-5,000,000
4,000,000
-2,800,000
-450,000
-45,000
30,000
735,000