During 2012, Lopez Corporation disposed of Pine Division, a major component of i

Question

During 2012, Lopez Corporation disposed of Pine Division, a major component of its business. Lopez realized a gain of $1,800,000, net of taxes, on the sale of Pine's assets. Pine's operating losses, net of taxes, were $2,100,000 in 2012. How should these facts be reported in Lopez's income statement for 2012?

Total Amount to be Included in
Income from Results of
Continuing Operations Discontinued Operations
a. $2,100,000 loss $1,800,000 gain
b. 300,000 loss 0
c. 0 300,000 loss
d. 1,800,000 gain 2,100,000 loss

Explanation / Answer

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