On June 30, 20X1, Mill Corp. incurred a $100,000 net loss from disposal of a business segment. Also, on June 30, 20X1, Mill paid $40,000 for property taxes assessed for the calendar year 20X1. What amount of the foregoing items should be included in the determination of Mill's net income or loss for the six-month interim period ended June 30, 20X1

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Business

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14 July, 08:42

On June 30, 20X1, Mill Corp. incurred a $100,000 net loss from disposal of a business segment. Also, on June 30, 20X1, Mill paid $40,000 for property taxes assessed for the calendar year 20X1. What amount of the foregoing items should be included in the determination of Mill's net income or loss for the six-month interim period ended June 30, 20X1

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Answers (1)

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Darius Hansen · Answer 1

Mill's loss for six month = $80000

Explanation:

given data

net loss = $100000

property taxes = $40000

to find out

Mill's net income or loss for six month

solution

we know here that net loss from disposal business is $100000

and we have given property taxes $40000 for 1 complete year

so here property taxes for 6 month = $40000 / 2

property taxes for 6 month = $20000

so here Mill's loss for six month = net loss - property taxes for 6 month

put here value

Mill's loss for six month = $100000 - $20000

Mill's loss for six month = $80000