In February 2019, Wall Corp decided to sell its entire Plant division. The Plant division was a major part of Wall Corp’s business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Wall Corp for its Plant division?
In February 2019, Wall Corp decided to sell its entire Plant division. The Plant division was a major part of Wall Corp’s business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Wall Corp for its Plant division?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 11MCQ
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In February 2019, Wall Corp decided to sell its entire Plant division. The Plant division was a major part of Wall Corp’s business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation , what should the net gain/(loss) to be reported in the income statements of Wall Corp for its Plant division?
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