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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On December 31, 2021, Max Company committed to a plan to discontinue the operations of Underwear Division. The fair value of the facilities was P1,000,000 less than carrying amount on December 31, 2021.
The division's operating loss for 2021 was P2,000,000 and the division was actually sold for P1,200,000 less than the carrying amount in 2022. The entity estimated that the division's operating loss for 2022 would be P500,000, The income tax rate is 30%
What amount should be reported as loss from discontinued operation in 2021?
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