The following condensed income statements of the jackson holding company are presented for the two years ended december 31, 2016 and 2015:
2015 2015
sales 15, 000, 000 9 ,600, 000
cost of goods sold 9, 200, 000 6 ,000, 000
gross profit $5, 800, 000 3,600, 000
operating expenses 3, 200, 000 2,600 ,000
operating income 2 600 000 1000 000
gain on sale of division 600 ,000 -
income tax expenses 1, 280, 000 400, 000
net income 1, 920 ,000 600 ,000
on october 15, 2016, jackson entered into a tentative agreement to sell the assets of one of its divisions. the division qualifies as a component of an entity as defined by gaap. the division was sold on december 31, 2016, for $5,000,000. book value of the division’s assets was $4,400,000. the division’s contribution to jackson’s operating income before-tax for each year was as follows:
2016 $400,000 loss
2015 $300,000 loss
assume an income tax rate of 40%.
prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. ignore eps disclosures. (amounts to be deducted should be indicated with a minus sign.)

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders? a) compensating managers with stock options, b) financing risky projects with additional debt, c) the threat of hostile takeovers, d) the use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions, e) abolishing the security and exchange commission

The penalties for a first-time dui charge include revocation of drivers license a. 180 days b. ben 180 des and one year c. bence 90 and 180 d. one year

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.