Presented below are the condensed income statement of Vital Corporation for the yearsended December 31, 2020 and 2019:20205,000,0003.350,0001,650,000675,000975,000200,0001,175,000411,250763.75020194,900,0003,300,0001,600,000650,000950,000SalesCost of goods soldGross incomeOperating expensesOperating incomeGain on sale of division950,000332,500617.500Net income before income taxIncome tax expense (35%)Net incomeOn October 10, 2020, Chalangs entered into an agreement to sell the assets of one of itsgeographical segments. The geographical segment comprises operations and cash flowsthat can be clearly distinguished, operationally and for financial reporting purposes, fromthe rest of the company. The segment was sold on December 31, 2020, for P1,750,000.The book value of the segment's assets was P1,550,000. The segment's contribution toChalangs' operating income before tax for each year was as follows:2020113,750 loss81,250 income2019Assume that by December 31, 2020, the segment had not yet been sold but wasconsidered held for sale. The fair value of the segment's assets on December 31 wasP1,250,000. The post-tax loss from discontinued operations for 2020, based on theabove data, should be:

To calculate net of tax loss/ gain from discontinued operations, 1. Calculate operating income/loss…

Answered: The post-tax loss from discontinued…

Business

Accounting

The post-tax loss from discontinued operations for 2020,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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