question archive On January 1, 2021, Deer Company had a division that met the criteria for discontinuance of a business component
On January 1, 2021, Deer Company had a division that met the criteria for discontinuance of a business component
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On January 1, 2021, Deer Company had a division that met the criteria for discontinuance of a business component. For the period January 1 through October 15, 2021, the component had revenue of P500,000 and expenses of P800,000. The assets of the component were sold on October 15, 2021 at a loss of P100,000. How should Deer report the component's operation for 2021?
Present solutions in good accounting form. No parenthetical solutions. Thanks.
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| Deer Company | |
| Income Statement | |
| December 31,2021 | |
| Discontinued operation: | |
|
Loss from operations of discontinued component (500,000-800,000) |
300,000 |
| Loss on disposal of discontinued component | 100,000 |
| Net Loss for the period | 400,00 |
Step-by-step explanation
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