On November 1, 2012, management of Dianne Company committed to a plan to dispose of a major subsidiary. The disposal meets the requirements for classification as discontinued operation. The carrying amount of the subsidiary was P8,000,000 and management estimated the fair value less costs to sell to be P6,500,000. For 2012, the subsidiary had a loss of P2,000,000. What total amount should be reported as loss from discontinued operation before the effect of taxes in the income statement for 2012?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On November 1, 2012, management of Dianne Company committed to a plan to dispose of a major subsidiary. The disposal meets the requirements for classification as discontinued operation. The carrying amount of the subsidiary was P8,000,000 and management estimated the fair value less costs to sell to be P6,500,000. For 2012, the subsidiary had a loss of P2,000,000. What total amount should be reported as loss from discontinued operation before the effect of taxes in the income statement for 2012? 

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