On September 1, 2022, Curly Company approved a formal plan to sell a business segment. The sale will occur in February 2023. The segment had operating income of P5,000,000 from January to August 31, and P1,000,00o for the remainder of the year 2018. During 2022, the company paid employees severance and relocation costs of P200,000 as a direct result of the discontinuing operation. The carrying amount of the segment was P8,000,00o and the recoverable amount was P10,000,000. The income tax rate is 30%.
On September 1, 2022, Curly Company approved a formal plan to sell a business segment. The sale will occur in February 2023. The segment had operating income of P5,000,000 from January to August 31, and P1,000,00o for the remainder of the year 2018. During 2022, the company paid employees severance and relocation costs of P200,000 as a direct result of the discontinuing operation. The carrying amount of the segment was P8,000,00o and the recoverable amount was P10,000,000. The income tax rate is 30%.
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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How much will be reported as income from ordinary activities of the discontinued segment, net of tax, for the year 2022? ( If income, leave the numerical figure positive; if loss, put a negative (-) sign before the numerical figure)
Transcribed Image Text:On September 1, 2022, Curly Company approved a formal plan to sell a business segment. The sale will occur in
February 2023. The segment had operating income of P5,000,000 from January to August 31, and P1,000,000
for the remainder of the year 2018. During 2022, the company paid employees severance and relocation costs of
P200,000 as a direct result of the discontinuing operation. The carrying amount of the segment was P8,000,000
and the recoverable amount was P10,000,000. The income tax rate is 30%.
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