machine division, to date, has not been a profitable business segment for the cofmipany. AS 2018, the company created a plan to dispose of the assets of the washing machine division. The sale was completed on December 1st December 2018 at a price of RO 850,000. The book value of the division's assets was RO 950,000. The division incurred a before tax operating profit from operations of RO 150,000 from the beginning of the year through December 1st, 2018. The after-tax income from continuing operations is RO 300,000 for 2018.The income tax rate for the company is 35%. a. Calculate the Net effect on the disposal of segments.

machine division, to date, has not been a profitable business segment for the cofmipany. AS 2018, the company created a plan to dispose of the assets of the washing machine division. The sale was completed on December 1st December 2018 at a price of RO 850,000. The book value of the division's assets was RO 950,000. The division incurred a before tax operating profit from operations of RO 150,000 from the beginning of the year through December 1st, 2018. The after-tax income from continuing operations is RO 300,000 for 2018.The income tax rate for the company is 35%. a. Calculate the Net effect on the disposal of segments.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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