During fiscal year 2020 the company sold one of theirkey divisions. The following information has been provided for this discontinued operation. Sold the Garage Door Division on October 31, 2020 | $ 1,30000 Gain from operations of discontinued Garage Door divisionfromJanuaury 1, 2020 through October 31, 2020. $ 12,50000 Gain from sale of the Garage Doordivision on October 31, 2020. Note: The operating gain of $13 million and gain fromthe sale of $125 million are both pre-tax amounts. The company C.F.O. has detemined thata 30%% tax rate should be applied. ed: Prepare the Discontinued Operations section for the income statement.

During fiscal year 2020 the company sold one of theirkey divisions. The following information has been provided for this discontinued operation. Sold the Garage Door Division on October 31, 2020 | $ 1,30000 Gain from operations of discontinued Garage Door divisionfromJanuaury 1, 2020 through October 31, 2020. $ 12,50000 Gain from sale of the Garage Doordivision on October 31, 2020. Note: The operating gain of $13 million and gain fromthe sale of $125 million are both pre-tax amounts. The company C.F.O. has detemined thata 30%% tax rate should be applied. ed: Prepare the Discontinued Operations section for the income statement.

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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DEF Company sells plant assets that originally cost $150,000 for $52,000 on December 31, 2011. The accumulated depreciation account had a balance for $60,000 after the current year’s depreciation of $15,000 had been recorded. The company should recognize a:A) $100,000 loss on disposalB) $40,000 gain on disposalC) $40,000 loss on disposalD) $25,000 loss on disposal
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