On September 1, 2022, Curly Company approved a formal plan to sell a business segment. The sale will occur in February 2023. The segment had operating income of P5,000,000 from January to August 31, and P1,000,00o for the remainder of the year 2018. During 2022, the company paid employees severance and relocation costs of P200,000 as a direct result of the discontinuing operation. The carrying amount of the segment was P8,000,00o and the recoverable amount was P10,000,000. The income tax rate is 30%.

On September 1, 2022, Curly Company approved a formal plan to sell a business segment. The sale will occur in February 2023. The segment had operating income of P5,000,000 from January to August 31, and P1,000,00o for the remainder of the year 2018. During 2022, the company paid employees severance and relocation costs of P200,000 as a direct result of the discontinuing operation. The carrying amount of the segment was P8,000,00o and the recoverable amount was P10,000,000. The income tax rate is 30%.

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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