Question
In: Accounting
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 agoRelated Solutions
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