On October 28, 2021, a company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2021, the end of the company's fiscal year. The division's loss from operations for 2021 was $1,870,00o. The division's book value and fair value less cost to sell on December 31 were $3,150,000 and $2,480,000, respectively. What before-tax amount(s) should the company report as loss on discontinued operations in its 2021 income statement? Multiple Choice $1,870,000 loss. $2.540,000 loss. No loss would be reported.

On October 28, 2021, a company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2021, the end of the company's fiscal year. The division's loss from operations for 2021 was $1,870,00o. The division's book value and fair value less cost to sell on December 31 were $3,150,000 and $2,480,000, respectively. What before-tax amount(s) should the company report as loss on discontinued operations in its 2021 income statement? Multiple Choice $1,870,000 loss. $2.540,000 loss. No loss would be reported.

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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Cred Company’s board of directors declared a property dividend to its incorporators in the form of the company’s equipment and machinery that had a carrying amount on June 30, 2020, the date of declaration of P5,000,000. The fair value less cost to distribute of these assets on the same date amounted to P5,500,000. The date of distribution was scheduled on January 31, 2021. On December 31, 2020, the fair value less cost to distribute of the machinery and equipment was estimated at P4,800,000 and further declined on the date of distribution on January 31, 2021, at a fair value less cost to distribute of P4,300,000. - What is the amount to be recognized in profit or loss for the year ended December 31, 2020? - What is the amount to be recognized in profit or loss in 2021 for the distribution?
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am. 105.
ABC Corp, comitted to sell a division on March 22, 2022. It sold the division on June 14, 2024. Income from operating this divisio was $2,408,000, $829,600 and $247,200 in 2022, 2023 and 2024, respectively. On December 31, 2022, the carrying value of the division was $7,080,000 and the fair value was &7,000,000. On December 31, 2023, the fair value of the division was $7,160,000 and the carrying value of the division was $7,080,000. The division was sold for $6,880,000 when the carrying value was $7,080,000 Prepare the discontinued operations section of the income statement for 2022 throuh 2024, assuming ABC Corp's income tax rate is 20%
Cred Company’s board of directors declared a property dividend to its incorporators in the form of the company’s equipment and machinery that had a carrying amount on June 30, 2020, the date of declaration of P5,000,000. The fair value less cost to distribute of these assets on the same date amounted to P5,500,000. The date of distribution was scheduled on January 31, 2021. On December 31, 2020, the fair value less cost to distribute of the machinery and equipment was estimated at P4,800,000 and further declined on the date of distribution on January 31, 2021, at a fair value less cost to distribute of P4,300,000. - What is the carrying amount of the machinery and equipment to be distributed as property dividends on December 31, 2020? - What is the dividend payable recognized on June 30, 2020?
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15.
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