In February 2019, Wall Corp decided to sell its entire Plant division. The Plant division was a major part of Wall Corp’s business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Wall Corp for its Plant division?

In February 2019, Wall Corp decided to sell its entire Plant division. The Plant division was a major part of Wall Corp’s business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Wall Corp for its Plant division?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 13P: Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended...

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In February 2019, Wall Corp decided to sell its entire Plant division. The Plant division was a major part of Wall Corp’s business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Wall Corp for its Plant division?2 points A.2019 (P350,000) / 2020 P500,000B. 2019 (P350,000) / 2020 P480,000C. 2019 P230,000 / 2020 P0D. 2019 P0 / 2020 P230,000
In February 2019, Book Co. decided to sell its entire Plant division. The Plant division was a major part of Book Co. business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant's net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Book Co. for its Plant division?
In February 2019, Book Co. decided to sell its entire Plant division. The Plant division was a major part of Book Co. business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant's net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Book Co. for its Plant division? A.2019 loss P350,000 / 2020 gain P500,000 B. 2019 loss P350,000 / 2020 gain P480,000 C. 2019 P230,000 / 2020 Po D. 2019 Po / 2020 P230,000
In February 2019, Walley Corp decided to sell its entire Plant division. The Plant division was a major part of Walley Corp’s business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Walley Corp for its Plant division? Select one: a. 2019 P 230,000 / 2020 P 0 b. 2019 (P 350,000) / 2020 P 480,000 c. 2019 P 0 / 2020 P 230,000 d. 2019 (P 350,000) / 2020 P 500,000
In February 2019, Wall Corp decided to sell its entire Plant division. ThePlant division was a major part of Wall Corp’s business and the sale willresult in a strategic change in direction for the company. The sale wascompleted in January 2020 and resulted in a gain on disposal ofP500,000. In 2019 Plant’s net losses were P350,000 and P20,000 in 2020up until the date of sale. Excluding taxation, what should the net gain/(loss)to be reported in the income statements of Wall Corp for its Plantdivision? A.2019 (P350,000) / 2020 P500,000B. 2019 (P350,000) / 2020 P480,000C. 2019 P230,000 / 2020 P0D. 2019 P0 / 2020 P230,000
Nosher Co. planned to sell its product X division on June 30, 2019. The carrying amount is P5,000,00 and fair value less cost of disposal of the division is P4,500,000. For the year 2019, the company reported net profit of P10,000,000 and P500,000 loss is attributed to product X division. How much is the income from discontinued operation in 2019?
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Your answer is partially correct. Trayer Corporation has income from continuing operations of $290,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). A gain of $30,000 on the discontinuance of a division (comprised of a $10,000 loss from operations and a $40,000 gain on disposal). 1. An unrealized loss of $80,000 on available-for-sale securities. 2. Assume all items are subject to income taxes at a 20% tax rate. Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income for the year ended December 31, 2022. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Income from Continuing Operations Discontinued Operations TRAYER CORPORATION Income Statement (Partial) For the Year Ended December 31, 2022 Gain from Disposal, Net of Income Taxes Loss from Operations, Net of Income Tax Savings Net Income (Loss) > > A…
On January 1, 2021, Company Ltd. decided to sell one of its processing plants located in New York. The plant, considered a component of the company, was sold on June 1, 2021. The plant assets with a carrying value of $650,000 were sold for $500,000. Operating income at the plant from January 1 to May 31, 2021, was $50,000. Ignoring taxes, what is the total amount that should be reported on Company's income statement for the year ended December 31, 2021, under "discontinued operations"?
An entity had the following events and transactions during 2020:- Depreciation for 2019 was understated by P500,000- A litigation settlement resulted in a loss of P2,000,000- The inventory on December 31, 2018 was overstated by P800,000- The entity disposed of a recreational division at a loss P1,500,000- The income tax rate is 30%What total amount of loss should be included in income from continuing operations for 2020? a. 2,000,000 c. 3,500,000 b. 1,400,000 d. 2,450,000 EXPLAIN THE ANSWER.
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