On December 31, 2019, the Board of Directors of EFF Company committed to a plan to discontinue the operations of its furniture division. The entity estimated that the furniture’s operating loss for 2020 would be ₱500,000 and that the fair value of its facilities was ₱300,000 less than the carrying amount. The furniture division’s 2019 operating loss was ₱1,400,000 and the division was actually sold for ₱400,000 less than the carrying amount in 2020. The effective tax rate is 30%. What amount should be reported as loss from discontinued operations in 2019? ₱ 1,190,000 ₱ 0 ₱ 1,400,000 ₱ 980,000
On December 31, 2019, the Board of Directors of EFF Company committed to a plan to discontinue the operations of its furniture division. The entity estimated that the furniture’s operating loss for 2020 would be ₱500,000 and that the fair value of its facilities was ₱300,000 less than the carrying amount. The furniture division’s 2019 operating loss was ₱1,400,000 and the division was actually sold for ₱400,000 less than the carrying amount in 2020. The effective tax rate is 30%. What amount should be reported as loss from discontinued operations in 2019? ₱ 1,190,000 ₱ 0 ₱ 1,400,000 ₱ 980,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 10MC
Related questions
Question
On December 31, 2019, the Board of Directors of EFF Company committed to a plan to discontinue the operations of its furniture division. The entity estimated that the furniture’s operating loss for 2020 would be ₱500,000 and that the fair value of its facilities was ₱300,000 less than the carrying amount. The furniture division’s 2019 operating loss was ₱1,400,000 and the division was actually sold for ₱400,000 less than the carrying amount in 2020. The effective tax rate is 30%. What amount should be reported as loss from discontinued operations in 2019?
₱ 1,190,000
₱ 0
₱ 1,400,000
₱ 980,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT