On May 31, 2016, the Arlene Corporation adopted aplan to sell Its cosmetics line fo business, considereda componentof theentity. The assets ofthecomponent were sold on October 13, 2016, for $1,120,000. The component generated operating income from January 1, 2016, through disposal of $300,000. In its income statement for the year ended December 31, 2016, the company reported before-tax income from operations ofadiscontinued component of $620,000. Whatwas the book value of the assets of the cosmetics component? OA) $800,000 O B) $1,420,000 O c) $300,000 O D) Al of these answerchoices are incorrect.

On May 31, 2016, the Arlene Corporation adopted aplan to sell Its cosmetics line fo business, considereda componentof theentity. The assets ofthecomponent were sold on October 13, 2016, for $1,120,000. The component generated operating income from January 1, 2016, through disposal of $300,000. In its income statement for the year ended December 31, 2016, the company reported before-tax income from operations ofadiscontinued component of $620,000. Whatwas the book value of the assets of the cosmetics component? OA) $800,000 O B) $1,420,000 O c) $300,000 O D) Al of these answerchoices are incorrect.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 35P

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