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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 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1.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

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