Question

Sunland Company had the following unusual transactions during 2017: A $441000 gain from selling the only investment Sunland has ever owned. A $630000 gain on the sale of equipment. A $213000 loss on the write-down of inventories. In its 2017 income statement, what amount should Sunland report as total unusual net gains

Answer 1

$858,000

Step-by-step explanation:

Calculation for the amount that Sunland should report as total unusual net gains

Using this formula

Total unusual net gains =(Equipment gain +Gain on Investment- Write-down loss)

Where,

Equipment gain =$630,000

Gain on Investment=$441,000

Write-down loss=$213,000

Let plug in the formula

Total unusual net gains =($630,000+$441,000-$213,000)

Total unusual net gains=$858,000

Therefore the amount that Sunland should report as total unusual net gains will be $858,000