Toys "R" Us had net sales of $82.5 million in fiscal year 2019 and $94.5 million in fiscal year 2020. The increase of $12 million is due to the sales of Org-Art and an increase in the average transaction value. Org-Art's revenue increased from $4.3 million to $12.2 million from fiscal years 2019 to 2020, resulting in an average increase of $7.9 million. The remaining increase of $4.08 million is due to the increase in the average transaction value. How these revenues or net sales should be reported/classified in the 2019- and 2020-income statements? 2) Toys "R" Us also sold its abandoned headquarters during relocation and made a gain of $2.7 million on the sale. What would be the appropriate classification of this gain?

Answer rating: 100% (QA)

1 Revenues or Net Sales Classification in the Income Statements In the 2019 income statement Net sal... View the full answer