Question

On September 1, 2021, Jolie Inc. committed to a plan to sell a division that qualified...

On September 1, 2021, Jolie Inc. committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2021, the end of the company's fiscal year. The division's loss from operations for 2021 was $1,950,000.

The division's book value and fair value less cost to sell on December 31 were $2,970,000 and $3,580,000, respectively. What before-tax amount(s) should Jolie report as loss on discontinued operations in its 2021 income statement?

Multiple Choice

  • $1,950,000 loss.

  • $610,000 gain included in continuing operations and a $1,950,000 loss from discontinued operations.

  • $2,560,000 loss.

  • No loss would be reported.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On October 28, 2021, a company committed to a plan to sell a division that qualified...
On October 28, 2021, a company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2021, the end of the company's fiscal year. The division's loss from operations for 2021 was $1,990,000. The division's book value and fair value less cost to sell on December 31 were $2,940,000 and $3,620,000, respectively. What before-tax amount(s) should the...
On October 28, 2013, Mercedes Company committed to a plan to sell a division that qualified...
On October 28, 2013, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2013, the end of the company's fiscal year. The division's loss from operations for 2013 was $2,000,000. The division's book value and fair value less cost to sell on December 31 were $3,000,000 and $2,500,000, respectively. What before-tax amount(s) should Mercedes...
On October 28, 2018, Mercedes Company committed to a plan to sell a division that qualified...
On October 28, 2018, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2018, the end of the company's fiscal year. The division's loss from operations for 2018 was $1,960,000. The division's book value and fair value less cost to sell on December 31 were $2,890,000 and $3,550,000, respectively. What before-tax amount(s) should Mercedes...
***PLEASE ANSWER ALL QUESTIONS** 3. On October 28, 2021, a company committed to a plan to...
***PLEASE ANSWER ALL QUESTIONS** 3. On October 28, 2021, a company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2021, the end of the company's fiscal year. The division's loss from operations for 2021 was $2,000,000. The division's book value and fair value less cost to sell on December 31 were $3,000,000 and $2,500,000, respectively....
***PLEASE ANSWER ALL QUESTIONS** 3. On October 28, 2021, a company committed to a plan to...
***PLEASE ANSWER ALL QUESTIONS** 3. On October 28, 2021, a company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2021, the end of the company's fiscal year. The division's loss from operations for 2021 was $2,000,000. The division's book value and fair value less cost to sell on December 31 were $3,000,000 and $2,500,000, respectively....
On September 17, 2021, Ziltech, Inc., entered into an agreement to sell one of its divisions...
On September 17, 2021, Ziltech, Inc., entered into an agreement to sell one of its divisions that qualifies as a component of the entity according to generally accepted accounting principles. By December 31, 2021, the company’s fiscal year-end, the division had not yet been sold, but was considered held for sale. The net fair value (fair value minus costs to sell) of the division’s assets at the end of the year was $16 million. The pretax income from operations of...
Question 1 Part A and B A. Freda's Florist reported the following before-tax income statement items...
Question 1 Part A and B A. Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2018: Operating income $ 265,000 Income on discontinued operations 63,000 All income statement items are subject to a 34% income tax rate. In its 2018 income statement, Freda's separately stated income tax expense and total income tax expense would be: Multiple Choice $111,520 and $90,100, respectively. $111,520 and $111,520, respectively. $90,100 and $111,520, respectively. $111,520 and $161,520, respectively....
On September 17, 2021, Ziltech, Inc., entered into an agreement to sell one of its divisions...
On September 17, 2021, Ziltech, Inc., entered into an agreement to sell one of its divisions that qualifies as a component of the entity according to generally accepted accounting principles. By December 31, 2021, the company’s fiscal year-end, the division had not yet been sold, but was considered held for sale. The net fair value (fair value minus costs to sell) of the division’s assets at the end of the year was $11 million. The pretax income from operations of...
On November 1, 2021, Warren Co. adopted a plan to discontinue its barge division, which qualifies...
On November 1, 2021, Warren Co. adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by April 30, 2022. On December 31, 2021, the company's year-end, the following information relative to the discontinued division was accumulated: Operating loss Jan. 1–Dec. 31, 2021 $ 74 million Estimated operating losses, Jan. 1 to April 30, 2022 96 million...
On October 1, 2017 LeBron Co. agreed to sell the assets of its Heat Division to...
On October 1, 2017 LeBron Co. agreed to sell the assets of its Heat Division to Cavalier Inc. for $80 million. The sale was completed on December 31, 2017. The following additional facts pertain to the transaction: The Heat Division qualifies as a component of the entity according to GAAP regarding discontinued operations. The book value of Heat's assets totaled $74 million on the date of the sale. Heat's operating income was a pre-tax loss of $3.5 million in 2017....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT