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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

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Question

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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