Problem 7-4 (IFRS) rOn September 30, 2021, when the carrying amount of the assets of a major subsidiary was P70,000,000, Young Company signed a legally binding contract to sell the subsidiary.The sale is expected to be completed by January 31, 2022 at a selling price of P60,000,000.In addition, prior to January 31, 2022, the sale contract obliged the entity to terminate the employment of certain employees of the business segment incurring an expected termination cost of P5,000,000 to be paid on June 30, 2022.The segment's revenue and expenses for 2021 were P40,000,000 and P45,000,000 respectively. The income tax rate is 30%.What amount should be reported as loss from discontinued operation for 2021?a. 10,500,000b. 20,000,000c. 15,000,000d. 14,000,000 Problem 7-4 (IFRS) to r169/00.00On September 30, 2021, when the carrying amount of the assetsof a major subsidiary was P70,000,000, Young Company signeda legally binding contract to sell the subsidiary.discontinuesThe sale is expected to be completed by January 31, 2022 ata selling price of P60,000,000.In addition, prior to January 31, 2022, the sale contractobliged the entity to terminate the employment of certainemployees of the business segment incurring an expectedtermination cost of P5,000,000 to be paid on June 30, 2022-.The segment's revenue and expenses for 2021 wereP40,000,000 and P45,000,000 respectively. The income taxrate is 30%.What amount should be reported as loss from discontinuedoperation for 2021?a. 10,500,000b. 20,000,000c. 15,000,000d. 14,000,000104

Discontinued operations are accounting words that refer to parts of a company's operations that have…

Answered: Problem 7-4 (IFRS) r On September 30,…

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Problem 7-4 (IFRS) r On September 30, 2021, when the carrying amount of the assets of a major subsidiary was P70,000,000, Young Company signed a legally binding contract to sell the subsidiary. The sale is expected to be completed by January 31, 2022 at a selling price of P60,000,000. In addition, prior to January 31, 2022, the sale contract obliged the entity to terminate the employment of certain employees of the business segment incurring an expected termination cost of P5,000,000 to be paid on June 30, 2022. The segment's revenue and expenses for 2021 were P40,000,000 and P45,000,000 respectively. The income tax rate is 30%. What amount should be reported as loss from discontinued operation for 2021? a. 10,500,000 b. 20,000,000 c. 15,000,000 d. 14,000,000

Problem 7-4 (IFRS) to r
169/00.00
On September 30, 2021, when the carrying amount of the assets
of a major subsidiary was P70,000,000, Young Company signed
a legally binding contract to sell the subsidiary.
discontinues
The sale is expected to be completed by January 31, 2022 at
a selling price of P60,000,000.
In addition, prior to January 31, 2022, the sale contract
obliged the entity to terminate the employment of certain
employees of the business segment incurring an expected
termination cost of P5,000,000 to be paid on June 30, 2022-.
The segment's revenue and expenses for 2021 were
P40,000,000 and P45,000,000 respectively. The income tax
rate is 30%.
What amount should be reported as loss from discontinued
operation for 2021?
a. 10,500,000
b. 20,000,000
c. 15,000,000
d. 14,000,000
104

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