Presented below are the condensed income statement of Vital Corporation for the years ended December 31,...

 

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Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 5,000,000 4,900,000 3,350,000 1,650,000 675,000 975,000 200,000 1,175,000 411,250 763.750 2019 Sales Cost of goods sold 3,300,000 1,600,000 650,000 950,000 Gross income Operating expenses Operating income Gain on sale of division Net income before income tax 950,000 332,500 617.500 Income tax expense (35%) Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the 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 to Chalangs' operating income before tax for each year was as follows: 2020 113,750 loss 81,250 income 2019 Assume that by December 31, 2020, the segment had not yet been sold but was considered held for sale. The fair value of the segment's assets on December 31 was P1,250,000. The post-tax loss from discontinued operations for 2020, based on the above data, should be: Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 5,000,000 4,900,000 3,350,000 1,650,000 675,000 975,000 200,000 1,175,000 411,250 763.750 2019 Sales Cost of goods sold 3,300,000 1,600,000 650,000 950,000 Gross income Operating expenses Operating income Gain on sale of division Net income before income tax 950,000 332,500 617.500 Income tax expense (35%) Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the 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 to Chalangs' operating income before tax for each year was as follows: 2020 113,750 loss 81,250 income 2019 Assume that by December 31, 2020, the segment had not yet been sold but was considered held for sale. The fair value of the segment's assets on December 31 was P1,250,000. The post-tax loss from discontinued operations for 2020, based on the above data, should be:

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