A company has decided to discontinue a component of its business and sells the component by the end of the year.

A company has decided to discontinue a component of its business and sells the component by the end of the year. The amount that the company would report as income from discontinued operations is (ignore tax effects):

Multiple Choice

only Income from operations for the year.
only the gain or loss on the disposal of the component's assets.
Income from operations for the year and only a loss on the disposal of the component's assets.
Income from operations for the year and either a gain or loss on the disposal of the component's assets.

Solutions

Expert Solution

Solution:

The amount to be reported as income from discontinued operations is "Income from operations for the year and either a gain or loss on the disposal of the component's assets".

Hence last option is correct.

ekkarill92 answered 2 years ago

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