Big company committed to sell its comic book division (a component of the business) on September 1, 2019. The carrying amount of the division was P2,000,000 and the fair value was P1,750,000. The disposal date is expected to be June 1, 2020. The division reported an operating loss of P100,000 for the year ended December 31, 2019. Ignoring income tax, what amount should be reported as loss from discontinued operation in 2019?
Big company committed to sell its comic book division (a component of the business) on September 1, 2019. The carrying amount of the division was P2,000,000 and the fair value was P1,750,000. The disposal date is expected to be June 1, 2020. The division reported an operating loss of P100,000 for the year ended December 31, 2019. Ignoring income tax, what amount should be reported as loss from discontinued operation in 2019?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 5MC: At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial...
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Big company committed to sell its comic book division (a component of the business) on September 1, 2019. The carrying amount of the division was P2,000,000 and the fair value was P1,750,000. The disposal date is expected to be June 1, 2020. The division reported an operating loss of P100,000 for the year ended December 31, 2019. Ignoring income tax, what amount should be reported as loss from discontinued operation in 2019?
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