Game Time Sports owns a recreational facility with basketball courts, pitching machines, and athletic fields. Determine whether the firm should report each of the following items as discontinued operations, other revenues, or other expenses.1. Due to insurance concerns, Game Time sells a trampoline basketball game for a loss of $1,500.2. Game Time experiences water damage due to a flood from a recent heavy storm. The company replaces the basketball floors at a cost of $75,000. Unfortunately, Game Time does not carry flood insurance.3. Game Time has revenues from three sources: basketball, baseball, and football. It sells the baseball operations for a loss of $55,000 to focus on the more profitable basketball and football operations.4. Game Time sells one of the buildings used for basketball operations at a gain of $250,000. The company has two other buildings for basketball and plans to build a new facility for basketball in another year or two.
Game Time Sports owns a recreational facility with basketball courts, pitching machines, and athletic fields. Determine whether the firm should report each of the following items as discontinued operations, other revenues, or other expenses.
1. Due to insurance concerns, Game Time sells a trampoline basketball game for a loss of $1,500.
2. Game Time experiences water damage due to a flood from a recent heavy storm. The company replaces the basketball floors at a cost of $75,000. Unfortunately, Game Time does not carry flood insurance.
3. Game Time has revenues from three sources: basketball, baseball, and football. It sells the baseball operations for a loss of $55,000 to focus on the more profitable basketball and football operations.
4. Game Time sells one of the buildings used for basketball operations at a gain of $250,000. The company has two other buildings for basketball and plans to build a new facility for basketball in another year or two.
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