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Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 2019 Sales 5,000,000 4,900,000 3.350,000 3.300,000 1,650,000 1,600,000 675,000 975,000 200,000 1,175,000 411,250 763.750 Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division 650,000 950,000 950,000 332,500 617.500 Net income before income tax Income tax expense (35%) Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The book value of the segment's assets was P1,550,000. The segment's contribution to Chalangs' operating income before tax for each year was as follows: 2020 113,750 loss 81,250 income 2019 Assume that by December 31, 2020, the segment had not yet been sold but was considered held for sale. The fair value of the segment's assets on December 31 was P1,250,000. The post-tax loss from discontinued operations for 2020, based on the above data, should be: Your answer

Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 2019 Sales 5,000,000 4,900,000 3.350,000 3.300,000 1,650,000 1,600,000 675,000 975,000 200,000 1,175,000 411,250 763.750 Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division 650,000 950,000 950,000 332,500 617.500 Net income before income tax Income tax expense (35%) Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The book value of the segment's assets was P1,550,000. The segment's contribution to Chalangs' operating income before tax for each year was as follows: 2020 113,750 loss 81,250 income 2019 Assume that by December 31, 2020, the segment had not yet been sold but was considered held for sale. The fair value of the segment's assets on December 31 was P1,250,000. The post-tax loss from discontinued operations for 2020, based on the above data, should be: Your answer

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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The post-tax loss from discontinued operations for 2020, based on the data, should be:

AutoSave Off INTAC P... P Search Sign in File Home Insert Design Layout References Mailings Review View Help A Share P Comments X Cut O Find - - 13.5 - A A Aa- A AaBbCcDc AaBbCcDc AaBbC AaBbCcC AaB AaBbCcc AaBbCcD Helvetica B Copy & Replace Paste BIU v ab x, x A - Iv A v I Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em. = A Select v S Format Painter Clipboard Font Paragraph Styles Editing 1.2.1:1. :X::1:1· 2:1:3·1· 4: 1· 5·1· 6 L ·7:1·8.L:9.1·10. 1 · 11· 1 ·12. 1 13. 1 · 14. 1 ·15. 1 16. 17. 1 18. 1 19 Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 2019 Sales Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division Net income before income tax Income tax expense (35%) 5,000,000 3.350.000 1,650,000 675.000 975,000 200,000 1,175,000 411,250 763,750 4,900,000 3.300,000 1,600,000 650,000 950,000 950,000 332,500 617.500 Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The book value of the segment's assets was P1,550,000. The segment's contribution to Chalangs' operating income before tax for each year was as follows: 2020 2019 113,750 loss 81,250 income Assume that by December 31, 2020, the segment had not yet been sold but was considered held for sale. The fair value of the segment's assets on December 31 was P1,250,000. The post-tax loss from discontinued operations for 2020, based on the above data, should be: Your answer Page 7 of 9 E English (Philippines) C Focus 90% 1076 words 10:16 AM Da コ G 1) ENG W 24/02/2021 立
Transcribed Image Text:AutoSave Off INTAC P... P Search Sign in File Home Insert Design Layout References Mailings Review View Help A Share P Comments X Cut O Find - - 13.5 - A A Aa- A AaBbCcDc AaBbCcDc AaBbC AaBbCcC AaB AaBbCcc AaBbCcD Helvetica B Copy & Replace Paste BIU v ab x, x A - Iv A v I Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em. = A Select v S Format Painter Clipboard Font Paragraph Styles Editing 1.2.1:1. :X::1:1· 2:1:3·1· 4: 1· 5·1· 6 L ·7:1·8.L:9.1·10. 1 · 11· 1 ·12. 1 13. 1 · 14. 1 ·15. 1 16. 17. 1 18. 1 19 Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 2019 Sales Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division Net income before income tax Income tax expense (35%) 5,000,000 3.350.000 1,650,000 675.000 975,000 200,000 1,175,000 411,250 763,750 4,900,000 3.300,000 1,600,000 650,000 950,000 950,000 332,500 617.500 Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The book value of the segment's assets was P1,550,000. The segment's contribution to Chalangs' operating income before tax for each year was as follows: 2020 2019 113,750 loss 81,250 income Assume that by December 31, 2020, the segment had not yet been sold but was considered held for sale. The fair value of the segment's assets on December 31 was P1,250,000. The post-tax loss from discontinued operations for 2020, based on the above data, should be: Your answer Page 7 of 9 E English (Philippines) C Focus 90% 1076 words 10:16 AM Da コ G 1) ENG W 24/02/2021 立
AutoSave Off INTAC P... P Search Sign in File Home Insert Design Layout References Mailings Review View Help A Share P Comments X Cut O Find - - 13.5 - A A Aa- A AaBbCcDc AaBbCcDc AaBbC AaBbCcC AaB AaBbCcc AaBbCcD Helvetica B Copy & Replace Paste BIU v ab x, x A - Iv A v I Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em. = A Select v S Format Painter Clipboard Font Paragraph Styles Editing 1.2.1:1. :X::1:1· 2:1:3·1· 4: 1· 5·1· 6 L ·7:1·8.L:9.1·10. 1 · 11· 1 ·12. 1 13. 1 · 14. 1 ·15. 1 16. 17. 1 18. 1 19 Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 2019 Sales Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division Net income before income tax Income tax expense (35%) 5,000,000 3.350.000 1,650,000 675.000 975,000 200,000 1,175,000 411,250 763,750 4,900,000 3.300,000 1,600,000 650,000 950,000 950,000 332,500 617.500 Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The book value of the segment's assets was P1,550,000. The segment's contribution to Chalangs' operating income before tax for each year was as follows: 2020 2019 113,750 loss 81,250 income Assume that by December 31, 2020, the segment had not yet been sold but was considered held for sale. The fair value of the segment's assets on December 31 was P1,250,000. The post-tax loss from discontinued operations for 2020, based on the above data, should be: Your answer Page 7 of 9 E English (Philippines) C Focus 90% 1076 words 10:16 AM Da コ G 1) ENG W 24/02/2021 立
Transcribed Image Text:AutoSave Off INTAC P... P Search Sign in File Home Insert Design Layout References Mailings Review View Help A Share P Comments X Cut O Find - - 13.5 - A A Aa- A AaBbCcDc AaBbCcDc AaBbC AaBbCcC AaB AaBbCcc AaBbCcD Helvetica B Copy & Replace Paste BIU v ab x, x A - Iv A v I Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em. = A Select v S Format Painter Clipboard Font Paragraph Styles Editing 1.2.1:1. :X::1:1· 2:1:3·1· 4: 1· 5·1· 6 L ·7:1·8.L:9.1·10. 1 · 11· 1 ·12. 1 13. 1 · 14. 1 ·15. 1 16. 17. 1 18. 1 19 Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 2019 Sales Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division Net income before income tax Income tax expense (35%) 5,000,000 3.350.000 1,650,000 675.000 975,000 200,000 1,175,000 411,250 763,750 4,900,000 3.300,000 1,600,000 650,000 950,000 950,000 332,500 617.500 Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The book value of the segment's assets was P1,550,000. The segment's contribution to Chalangs' operating income before tax for each year was as follows: 2020 2019 113,750 loss 81,250 income Assume that by December 31, 2020, the segment had not yet been sold but was considered held for sale. The fair value of the segment's assets on December 31 was P1,250,000. The post-tax loss from discontinued operations for 2020, based on the above data, should be: Your answer Page 7 of 9 E English (Philippines) C Focus 90% 1076 words 10:16 AM Da コ G 1) ENG W 24/02/2021 立
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