Question

On September 1, 2014, Revsine Co. approved a plan to dispose of a segment of its business. Revsine expected that the sale would occur on March 31, 2014, at an estimated gain of $350,000. The segment had actual and estimated operating profits (losses) as follows:
Realized loss from 8/1/14 to 8/31/14 ...... $(300,000)
Realized loss from 9/1/14 to 12/31/14 ...... (200,000)
Expected profit from 1/1/15 to 3/30/15 .... 400,000
Assume that the marginal tax rate is 30%.

Required:
In its 2014 income statement, what should Revsine report as profit or loss from discontinued operations (net of tax effects)?



$1.99
Sales1
Views111
Comments0
  • CreatedSeptember 10, 2014
  • Files Included
Post your question
5000