Big company committed to sell its comic book division (a component of the business) on September 1, 2019. The carrying amount of the division was P2,000,000 and the fair value was P1,750,000. The disposal date is expected to be June 1, 2020. The division reported an operating loss of P100,000 for the year ended December 31, 2019. Ignoring income tax, what amount should be reported as loss from discontinued operation in 2019?

Big company committed to sell its comic book division (a component of the business) on September 1, 2019. The carrying amount of the division was P2,000,000 and the fair value was P1,750,000. The disposal date is expected to be June 1, 2020. The division reported an operating loss of P100,000 for the year ended December 31, 2019. Ignoring income tax, what amount should be reported as loss from discontinued operation in 2019?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5MCQ

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