On November 1, 2012, management of Dianne Company committed to a plan to dispose of a major subsidiary. The disposal meets the requirements for classification as discontinued operation. The carrying amount of the subsidiary was P8,000,000 and management estimated the fair value less costs to sell to be P6,500,000. For 2012, the subsidiary had a loss of P2,000,000. What total amount should be reported as loss from discontinued operation before the effect of taxes in the income statement for 2012?
On November 1, 2012, management of Dianne Company committed to a plan to dispose of a major subsidiary. The disposal meets the requirements for classification as discontinued operation. The carrying amount of the subsidiary was P8,000,000 and management estimated the fair value less costs to sell to be P6,500,000. For 2012, the subsidiary had a loss of P2,000,000. What total amount should be reported as loss from discontinued operation before the effect of taxes in the income statement for 2012?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On November 1, 2012, management of Dianne Company committed to a plan to dispose of a major subsidiary. The disposal meets the requirements for classification as discontinued operation. The carrying amount of the subsidiary was P8,000,000 and management estimated the fair value less costs to sell to be P6,500,000. For 2012, the subsidiary had a loss of P2,000,000. What total amount should be reported as loss from discontinued operation before the effect of taxes in the income statement for 2012?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education