Avalia Ltd. decided on January 1, 2019 to discontinue its plastic-making division. The division, properly identified as
Fantastic news! We've Found the answer you've been seeking!
Question:
Avalia Ltd. decided on January 1, 2019 to discontinue its plastic-making division.
The division, properly identified as a reportable segment, was sold on June 1, 2019.
Division assets with a carrying value of $1,600,000 were sold for $1,000,000.
Operating income from January 1, to May 30, 2019 for the division amounted to $250,000. Income taxes are at the rate of 30%.
What amount should be reported on Avalia's income statement for the year ended December 31, 2019 under the caption "discontinued operations"? Show all of your work to maximize marks.
The division, properly identified as a reportable segment, was sold on June 1, 2019.
Division assets with a carrying value of $1,600,000 were sold for $1,000,000.
Operating income from January 1, to May 30, 2019 for the division amounted to $250,000. Income taxes are at the rate of 30%.
What amount should be reported on Avalia's income statement for the year ended December 31, 2019 under the caption "discontinued operations"? Show all of your work to maximize marks.
Expert Answer:
Answers Carrying value of divisions asset 1600000 Sale price of division assets 1000000 Loss on d... View the full answer
Related Book For 
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
