Respuesta :
Answer:
The amount should be reported on Bramble’s income statement for the current year under the caption, Discontinued Operations is a loss of $-174,000
Explanation:
According to the given data we have the following:
Income from Discontinued operation=$200,000
Loss on sale of Assets of discontinued operation=division’s assets book value-price sold
Loss on sale of Assets of discontinued operation=$1,272,000-$898,000
Loss on sale of Assets of discontinued operation=$374,000
Therefore, The amount should be reported on Bramble’s income statement for the current year under the caption, Discontinued Operations can be calculated as follows:
amount should be reported on Bramble’s income statement=Income from Discontinued operation+Loss on sale of Assets of discontinued operation
amount should be reported on Bramble’s income statement=$200,000-$374,000
amount should be reported on Bramble’s income statement=$-174,000
The amount should be reported on Bramble’s income statement for the current year under the caption, Discontinued Operations is a loss of $-174,000
Answer:
Discontinued operations= $374,000 loss
Explanation:
Discontinued operations is defined as the part of a companie's operations that has been shut down or divested from normal or continued operations.
Discontinued operations are reported seperately from the companie's normal operations.
To calculate discontinued operation we find difference between the sale price of the division and the fair value, and minus transaction cost too.
In this scenario
Discontinued operations= Sale price - Book value
Discontinued operations= 898,000 - 1,272,000
Discontinued operations= $374,000 loss
