n January 1, 2022, Labo Mo Company, met the criteria for discontinuance of a business segment. For the period January 1 through October 15, 2022, the segment had revenues of P1,000,000 and expenses of P1,600,000. The assets of the segment were sold on October 15, 2022 at a loss for which no tax benefit is available. In the statement of comprehensive income for the year ended December 31, 2022, How should Labo Mo report the segment’s operations from January 1, 2022 to October 15, 2022? a. P1,000,000 and P1,6000 should be included with revenues and expenses, respectively, as part of the continuing operations. b. P600,000 should be reported as part of the loss on operations and disposal of a segment. c. P600,000 should be reported as an extraordinary loss.
On January 1, 2022, Labo Mo Company, met the criteria for discontinuance of a business segment. For the
period January 1 through October 15, 2022, the segment had revenues of P1,000,000 and expenses of P1,600,000. The
assets of the segment were sold on October 15, 2022 at a loss for which no tax benefit is available. In the statement of
comprehensive income for the year ended December 31, 2022,
How should Labo Mo report the segment’s operations from January 1, 2022 to October 15, 2022?
a. P1,000,000 and P1,6000 should be included with revenues and expenses, respectively, as part of the continuing
operations.
b. P600,000 should be reported as part of the loss on operations and disposal of a segment.
c. P600,000 should be reported as an extraordinary loss.
d. P1,000,000 should be reported as revenues from operations of discontinued segment.
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