19. In 2020, Roy Industries decided to discontinue its Laminating Division, a separately identifiable component of Roy's business. At December 31, 2020, the division has not been completely sold. However, negotiations for the final and complete sale are progressing in a positive manner, and it is probable that the disposal will be completed within a year. Analysis of the records disclosed the following: Operating loss for the year P899,000 Loss on disposal of some assets during 2020 50,000 Expected operating loss in 2021 450,000 Expected gain in 2021 on disposal of division 200,000 Assuming a 35% tax rate, how much will be reported as loss from discontinued operations in Roy's 2020 income statement? P_________ Use the following information for the next two questions. Presented below are the condensed income statements of Robert Corporation for the years ended December 31, 2020 and 2019: 2020 2019 Sales P5,000,000 P4,900,000 Cost of goods sold 3,350,000 3,300,000 Gross profit 1,650,000 1,600,000 Operating expenses 675,000 650,000 Operating income 975,000 950,000 Gain on sale of division 200,000 ---- 1,175,000 950,000 Income tax expense (35%) 411,250 332,500 Net income P 763,750 P 617,500 On October 10, 2020, Robert entered into an agreement to sell the assets of one of its segments. The segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The carrying amount of the segment's assets was P1,550,000. The segment's contribution to Robert's operating income before tax for each year was as follows: 2020 - P113,750 loss; 2019 - P81,250 income. 20. For comparative purposes, how much is the income from continuing operations in 2019? a. P694,688 c. P617,500 b. P670,312 d. P564,688 21. How much should be reported as income from discontinued operations in 2020? a. P130,000 b. P56,062 c. P 86,250 d. P 0 22. The components of other comprehensive income include: a. Changes in revaluation surplus b. Remeasurements of defined benefit plans c. Gains and losses arising from translating the financial statements of a foreign operation d. All of these 23. The components of other comprehensive income in accordance with PFRS 9 include: I. Gains and losses on financial assets measured at fair value through OCI. II. For particular liabilities designated as at fair value through profit or loss, the amount of the change in fair value that is attributable to changes in the liability's credit risk. III. The effective portion of gains and losses on hedging instruments in a cash flow hedge. IV. The gains and losses on hedging instruments that hedge investments in equity instruments measured at fair value through OCI. V. Changes in the value of the time value of options when separating the intrinsic value and time value of an option contract and designating as the hedging instrument only the changes in the intrinsic value. VI. Changes in the value of the forward elements of forward contracts when separating the forward element and spot element of a forward contract and designating as the hedging instrument only the changes in the spot element VII. Changes in the value of the foreign currency basis spread of a financial instrument when excluding it from the designation of that financial instrument as the hedging instrument. a. I, II, III, IV, V, VI and VII b. I, II, III, and IV only c. I, II, and III only d. I, III, and IV only
19. In 2020, Roy Industries decided to discontinue its Laminating Division, a separately identifiable component of Roy's business. At December 31, 2020, the division has not been completely sold. However, negotiations for the final and complete sale are progressing in a positive manner, and it is probable that the disposal will be completed within a year. Analysis of the records disclosed the following:
Operating loss for the year P899,000
Loss on disposal of some assets during 2020 50,000
Expected operating loss in 2021 450,000
Expected gain in 2021 on disposal of division 200,000
Assuming a 35% tax rate, how much will be reported as loss from discontinued operations in Roy's 2020 income statement? P_________
Use the following information for the next two questions. Presented below are the condensed income statements of
Robert Corporation for the years ended December 31,
2020 and 2019:
2020 2019
Sales P5,000,000 P4,900,000
Cost of goods sold 3,350,000 3,300,000
Gross profit 1,650,000 1,600,000
Operating expenses 675,000 650,000
Operating income 975,000 950,000
Gain on sale of division 200,000 ----
1,175,000 950,000
Income tax expense (35%) 411,250 332,500
Net income P 763,750 P 617,500
On October 10, 2020, Robert entered into an agreement to sell the assets of one of its segments. The segment comprises operations and
2019 - P81,250 income.
20. For comparative purposes, how much is the income from continuing operations in 2019?
a. P694,688 c. P617,500
b. P670,312 d. P564,688
21. How much should be reported as income from discontinued operations in 2020?
a. P130,000
b. P56,062
c. P 86,250
d. P 0
22. The components of other comprehensive income include:
a. Changes in revaluation surplus
b. Remeasurements of defined benefit plans
c. Gains and losses arising from translating the financial statements of a foreign operation
d. All of these
23. The components of other comprehensive income in accordance with PFRS 9 include:
I. Gains and losses on financial assets measured at
fair value through OCI.
II. For particular liabilities designated as at fair value through profit or loss, the amount of the change in fair value that is attributable to changes in the liability's credit risk.
III. The effective portion of gains and losses on hedging instruments in a cash flow hedge.
IV. The gains and losses on hedging instruments that hedge investments in equity instruments measured at fair value through OCI.
V. Changes in the value of the time value of options when separating the intrinsic value and time value of an option contract and designating as the hedging instrument only the changes in the intrinsic value.
VI. Changes in the value of the forward elements of forward contracts when separating the forward element and spot element of a forward contract and designating as the hedging instrument only the changes in the spot element
VII. Changes in the value of the foreign currency basis spread of a financial instrument when excluding it from the designation of that financial instrument as the hedging instrument.
a. I, II, III, IV, V, VI and VII
b. I, II, III, and IV only
c. I, II, and III only
d. I, III, and IV only
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