In February 2019, Walley Corp decided to sell its entire Plant division. The Plant division was a major part of Walley 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 Walley Corp for its Plant division? Select one: a. 2019 P 230,000 / 2020 P 0 b. 2019 (P 350,000) / 2020 P 480,000 c. 2019 P 0 / 2020 P 230,000 d. 2019 (P 350,000) / 2020 P 500,000
In February 2019, Walley Corp decided to sell its entire Plant division. The Plant division was a major part of Walley 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 Walley Corp for its Plant division? Select one: a. 2019 P 230,000 / 2020 P 0 b. 2019 (P 350,000) / 2020 P 480,000 c. 2019 P 0 / 2020 P 230,000 d. 2019 (P 350,000) / 2020 P 500,000
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, Walley Corp decided to sell its entire Plant division. The Plant division was a major part of Walley 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
Select one:
a. 2019 P 230,000 / 2020 P 0
b. 2019 (P 350,000) / 2020 P 480,000
c. 2019 P 0 / 2020 P 230,000
d. 2019 (P 350,000) / 2020 P 500,000
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