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Pia Company commits to a plan t o dispose of one of its operating segments. The disposal meets the requirements for discontinued operations. Records disclosed the following for the disposal group: Carrying amount                                            P8,000,000 Fair value less costs to sell                             6,500,000 Loss from operations                                      2,000,000 Expected operating loss prior to disposal         500,000 Disregarding income tax, how much will be reported as loss from discontinued operations? a. P4,000,000 b. P3,500,000. c. P2,000,000 d. P1,500,000

Pia Company commits to a plan t o dispose of one of its operating segments. The disposal meets the requirements for discontinued operations. Records disclosed the following for the disposal group: Carrying amount                                            P8,000,000 Fair value less costs to sell                             6,500,000 Loss from operations                                      2,000,000 Expected operating loss prior to disposal         500,000 Disregarding income tax, how much will be reported as loss from discontinued operations? a. P4,000,000 b. P3,500,000. c. P2,000,000 d. P1,500,000

FINANCIAL ACCOUNTING
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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Pia Company commits to a plan t o dispose of one of its operating segments. The disposal meets the requirements for discontinued operations.

Records disclosed the following for the disposal group:

Carrying amount                                            P8,000,000

Fair value less costs to sell                             6,500,000

Loss from operations                                      2,000,000

Expected operating loss prior to disposal         500,000

Disregarding income tax, how much will be reported as loss from discontinued operations?

a. P4,000,000 b. P3,500,000. c. P2,000,000 d. P1,500,000

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