In February 2019, Wall Corp decided to sell its entire Plant division. The Plant division was a major part of Wall Corp’s business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Wall Corp for its Plant division? A.2019 (P350,000) / 2020 P500,000 B. 2019 (P350,000) / 2020 P480,000 C. 2019 P230,000 / 2020 P0 D. 2019 P0 / 2020 P230,000
In February 2019, Wall Corp decided to sell its entire Plant division. The Plant division was a major part of Wall Corp’s business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Wall Corp for its Plant division? A.2019 (P350,000) / 2020 P500,000 B. 2019 (P350,000) / 2020 P480,000 C. 2019 P230,000 / 2020 P0 D. 2019 P0 / 2020 P230,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In February 2019, Wall Corp decided to sell its entire Plant division. The
Plant division was a major part of Wall Corp’s business and the sale will
result in a strategic change in direction for the company. The sale was
completed in January 2020 and resulted in a gain on disposal of
P500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020
up until the date of sale. Excluding
to be reported in the income statements of Wall Corp for its Plant
division?
A.2019 (P350,000) / 2020 P500,000
B. 2019 (P350,000) / 2020 P480,000
C. 2019 P230,000 / 2020 P0
D. 2019 P0 / 2020 P230,000
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