Help Save&Exit; Submb On August t,2018, Rocket Retailers adopted a plan to disco

Question

Help Save&Exit; Submb On August t,2018, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was On January 31, 2019, Rocket's fiscal year-end, the follawing information relative to the discontinued division was accumulated Operating loss Feb. 1, 2018-Jan. 31, 2019 Estinated operating losses, Feb. 1-June 30, 2019 Impairment of division assets at Jan. 31, 2019 $119,000 74,000 15,000 In its income statement for the year ended January 31, 2019, Rocket would report a before-tax loss on discontinued operations of 0 $03400 134.000) MacBookAr 58 5 8

Explanation / Answer

CALCULATION OF THE BEFORE TAX LOSS ON DISCONTINIOUS OPERATION Operating Loss till the year End Jan, 31 2019 = $              1,19,000 Add: Impairnment of divission assets = $                  15,000 Estimated operating losses , Feb 01 - June 30 2019 $                           -   (It will not be considred because this is for the next year) Total $              1,34,000 Answer = Option 1 = ( $ 134,000)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.