1. Decrease in equity from peripheral or incidental transactions of an entity are:

a. liabilities

b. losses

c. withdrawal from owners

d. expenses

2) On January 1, 2020 Bellar LTD. decided to discontinue its plastics making division. The division considered a reportable segment, was sold on June 1 2020. Division assets with a carrying value of $812,500 were sold for $625,000. Operating income from January 1 to May 31 for the division was $62,500. Their income tax rate is 25%. What amount should be reported on Bellar's income statement for the year ended December 31, 2020, under the caption "discontinued operations"?

a. $62,500 gain

b. $93,750 loss

c. $125,000 loss

d. $187,500 loss

3. When using the expected cash flow approach

a. The element being measured should not have variable cash flows

b. The projected cash flows should be certain in terms of amount & timing

c. The discount rate should be adjusted based on the riskiness of the cash flows.

d. Estimated probabilities should be used to account for cash flows.