4. What amount should be reported as loss fromdiscontinued operation in 2021? *Problem B. On December 31, 2021, Max Company committed to a plan to discontinue the operations ofUnderwear Division. The fair value of the facilities was P1,000,000 less than carrying amount onDecember 31, 2021.The division's operating loss for 2021 was P2,000,000 and the division was actually sold for P1,200,000less than the carrying amount in 2022. The entity estimated that the division's operating loss for 2022would be P500,000. The income tax rate is 30%.4. What amount should be reported as loss from discontinued operation in 2021?

The loss from discontinued operations will include operating loss from operations and unrealized…

Answered: 31, 2021, Max Company committed to a…

31, 2021, Max Company committed to a plan to discontinue the fair value of the facilities was P1,000,000 less than carrying ama

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

4. What amount should be reported as loss from
discontinued operation in 2021? *
Problem B. On December 31, 2021, Max Company committed to a plan to discontinue the operations of
Underwear Division. The fair value of the facilities was P1,000,000 less than carrying amount on
December 31, 2021.
The division's operating loss for 2021 was P2,000,000 and the division was actually sold for P1,200,000
less than the carrying amount in 2022. The entity estimated that the division's operating loss for 2022
would be P500,000. The income tax rate is 30%.
4. What amount should be reported as loss from discontinued operation in 2021?

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