On April 30, 2020, Sa Young Nam Company approved a plan to dispose of a segment of its business. At this date, the entity is committed to a plan to sell the segment and classifies its assets as Held for Sale. The carrying value of the segment's net assets on April 30 was P800,000. In compliance with IFRS 5, no further depreciation or amortization was taken up on these assets until they were sold in November. During November, disposal costs incurred by Sa Young Nam totaled P22,500. During the period January 1, 2020 through November 30, 2020, the segment had total revenues of P4,500,000 and total selling and administrative expenses of P4,080,000. On November 30, 2020, the segment's net assets were sold for P850,000. The income tax rate is 30%. What is the single amount reported as discontinued onerations in Sa Voung Nam' profit or loss for 2020?
On April 30, 2020, Sa Young Nam Company approved a plan to dispose of a segment of its business. At this date, the entity is committed to a plan to sell the segment and classifies its assets as Held for Sale. The carrying value of the segment's net assets on April 30 was P800,000. In compliance with IFRS 5, no further depreciation or amortization was taken up on these assets until they were sold in November. During November, disposal costs incurred by Sa Young Nam totaled P22,500. During the period January 1, 2020 through November 30, 2020, the segment had total revenues of P4,500,000 and total selling and administrative expenses of P4,080,000. On November 30, 2020, the segment's net assets were sold for P850,000. The income tax rate is 30%. What is the single amount reported as discontinued onerations in Sa Voung Nam' profit or loss for 2020?
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 26P
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Transcribed Image Text:On April 30, 2020, Sa Young Nam Company approved a plan to dispose of a segment of its business. At
this date, the entity is committed to a plan to sell the segment and classifies its assets as Held for Sale.
The carrying value of the segment's net assets on April 30 was P800,000. In compliance with IFRS 5, no
further depreciation or amortization was taken up on these assets until they were sold in November.
During November, disposal costs incurred by Sa Young Nam totaled P22,500.
During the period January 1, 2020 through November 30, 2020, the segment had total revenues of
P4,500,000 and total selling and administrative expenses of P4,080,00o. On November 30, 2020, the
segment's net assets were sold for P850,000. The income tax rate is 30%. What is the single amount
reported as discontinued operations in Sa Young Nam' profit or loss for 2020?
A. P447,500
B. P397,500
С. Р313,250
D. P278,250
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