On June 1, 2021, Startlet Company approved a plan to dispose of a business segment. It is expected that the sale will occur on April 30, 2022. On December 31, 2021, the carrying value of net assets of the segment was P4,000,000 and the net recoverable amount was P3,600,000. During 2021, the company paid employees severance and relocation costs of P200,000 as a direct result of the discontinuing operation. The revenues and expenses of the discontinuing segment during 2021 were: Period covered January 1 to May 31 June 1 to December 31 Revenue P3,000,000 1,400,000 Expenses P4,000,000 1,800,000 Income tax rate is 35%. What amount should be reported as loss from discontinued operation for 2021?

On June 1, 2021, Startlet Company approved a plan to dispose of a business segment. It is expected that the sale will occur on April 30, 2022. On December 31, 2021, the carrying value of net assets of the segment was P4,000,000 and the net recoverable amount was P3,600,000. During 2021, the company paid employees severance and relocation costs of P200,000 as a direct result of the discontinuing operation. The revenues and expenses of the discontinuing segment during 2021 were: Period covered January 1 to May 31 June 1 to December 31 Revenue P3,000,000 1,400,000 Expenses P4,000,000 1,800,000 Income tax rate is 35%. What amount should be reported as loss from discontinued operation for 2021?

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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