Beachroamers Inc. decided to discontinue its sculptured driftwood division on June 30, 2021. From January through June of 2021, the division had a loss of $25,000 before operations were stopped. The assets of this division have a carrying value of $575,000, and the company is actively marketing the sale of the division for $550,000, less selling costs of $5,000. Beachroamer's corporate tax rate is 25%. On December 31, the company has not yet received an offer on the division. At what amount should the division be recorded on the balance sheet on December 31? Question 6 options: $545,000 $550,000 $436,000 $440,000
Beachroamers Inc. decided to discontinue its sculptured driftwood division on June 30, 2021. From January through June of 2021, the division had a loss of $25,000 before operations were stopped. The assets of this division have a carrying value of $575,000, and the company is actively marketing the sale of the division for $550,000, less selling costs of $5,000. Beachroamer's corporate tax rate is 25%. On December 31, the company has not yet received an offer on the division. At what amount should the division be recorded on the balance sheet on December 31? Question 6 options: $545,000 $550,000 $436,000 $440,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Beachroamers Inc. decided to discontinue its sculptured driftwood division on June 30, 2021. From January through June of 2021, the division had a loss of $25,000 before operations were stopped. The assets of this division have a carrying value of $575,000, and the company is actively marketing the sale of the division for $550,000, less selling costs of $5,000. Beachroamer's corporate tax rate is 25%. On December 31, the company has not yet received an offer on the division. At what amount should the division be recorded on the balance sheet on December 31?
Question 6 options:
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$545,000 |
|
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$550,000 |
|
|
$436,000 |
|
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$440,000 |
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