1. Information (in dollars) related to
Lobnitz Service Company for 2013 follows.
Sales revenues 600,000
Selling, general, and administrative
Property, plant, and equipment (net) 750,000
Prepaid insurance expense 2,000
Interest and other investment income 24,000
Loss on the disposal of the consulting
division * 50,000
Loss from operating the consulting
division up until its disposal * 24,000
Other miscellaneous losses 30,000
Interest expense 9,000
* The consulting division was considered a
income statement in good form for the year 2013. Assume a 35% tax rate and that 200,000 shares
of common stock were outstanding during all of 2013.
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