In 2019, Roy Industries decided to discontinue its Laminating Division, a separately identifiable component of Roy's business. At December 31, 2019, 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 for the year disclosed the following relative to the Laminating Division: Operating loss for the year Loss on disposal of some Laminating Division assets during 2019 Expected operating loss in 2020 preceding final disposal Expected gain in 2020 on disposal of division P899,000 50,000 450,000 200,000

In 2019, Roy Industries decided to discontinue its Laminating Division, a separately identifiable component of Roy's business. At December 31, 2019, 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 for the year disclosed the following relative to the Laminating Division: Operating loss for the year Loss on disposal of some Laminating Division assets during 2019 Expected operating loss in 2020 preceding final disposal Expected gain in 2020 on disposal of division P899,000 50,000 450,000 200,000

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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