question archive An entity had two operating divisions, one manufactures machinery and the other breeds and sells horses
An entity had two operating divisions, one manufactures machinery and the other breeds and sells horses
Subject:AccountingPrice: Bought3
An entity had two operating divisions, one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components. 3. The horse division has been unprofitable and on November 15, 2019, the entity adopted a formal plan to sell the division. At December 31, 2019, the component was considered held for sale. On December 31, 2019, the carrying amount of the assets of the horse division was PS,000,000. On that date, the fair value of the assets less cost of disposal was P4,000,000. The before-tax operating loss of the horse division for the year was P1,500,000. The after-tax income from continuing operations of the entity for 2019 was P8,000,000. The income tax rate is 30% What amount should be reported as loss from discontinued operation for 2019? 1. 2,500,000 b. 1,750,000 c. 1,050,000 d. 2,050,000 What amount should be reported as net income for 2019? 4,500,000 b. 5,600,000 G. 3,850,000 d 6250,000 2
