On December 31, 2021 Max Sara Beauty Corp. committed to a plan to discontinue the operations of its Lingerie Division. The fair value of the facilities was P1,000,000 less than carrying amount on December 31,2021. The division's operating loss for 2021 was P2,000,000 and the division was actually sold for P1,200,000 less than carrying amount in 2022.The entity estimated that the division's operating loss for 2022 would be P500,000. The income tax rate is 30%. What amount would be reported as loss from discontinued operation in 2021? A.3000000 B. 2100000 C. 2240000 D.2450000
On December 31, 2021 Max Sara Beauty Corp. committed to a plan to discontinue the operations of its Lingerie Division. The fair value of the facilities was P1,000,000 less than carrying amount on December 31,2021. The division's operating loss for 2021 was P2,000,000 and the division was actually sold for P1,200,000 less than carrying amount in 2022.The entity estimated that the division's operating loss for 2022 would be P500,000. The income tax rate is 30%. What amount would be reported as loss from discontinued operation in 2021? A.3000000 B. 2100000 C. 2240000 D.2450000
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 17P
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On December 31, 2021 Max Sara Beauty Corp. committed to a plan to discontinue the operations of its Lingerie Division. The fair value of the facilities was P1,000,000 less than carrying amount on December 31,2021. The division's operating loss for 2021 was P2,000,000 and the division was actually sold for P1,200,000 less than carrying amount in 2022.The entity estimated that the division's operating loss for 2022 would be P500,000. The income tax rate is 30%. What amount would be reported as loss from discontinued operation in 2021?
A.3000000
B. 2100000
C. 2240000
D.2450000
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