on march 1 year 7 pill company approved a formal plan to sell one of its compone
ID: 2481283 • Letter: O
Question
on march 1 year 7 pill company approved a formal plan to sell one of its components this component meets all the criteria for classification as held sale and its result of operations meet the criteria for reporting in discontinued operations the sale will occur on january 31 year 8 the component had a 200,000 operating loss from january 1 to march 1 year 7 and 800,000 operating loss from march 1 through december 31 year 7 these loses excluded the effective of writing down the component to its fair market value minus cost to sell pill expect in incur an operating loss on the component of january year 8 and realize a 150,000 gain on sale of its assets. phill's tax rate 40% in assuming that pill recognized a 500,000 loss in year 7 from writing down the component to its fair value minus cost to sell how much loss from discounted operations should pill report in its december 31 year 7 income statement
Explanation / Answer
To sell how much loss from discounted operations should pill report in its december 31 year 7 income statement = 200,000 + 800,000 + 5,00,000
= $15,00,000
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