Saginaw Inc decided on August 1 . 2014, to dispose of a component of its business. The component was sold on November 30, 2014 . Saginaw's income for 2014 included income of $250,000 from operating the discontinued segment from January 1 to the sale date. Saginaw incurred a loss on the November 30 sale of $220,000 . Ignoring income taxes, what amount should be reported in the 2014 income
statement as the net income or loss under "Discontinued Operations"?
a. $220,000 loss
b. $30,000 loss
c. $30,000 income
d. $250,000 income
C
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Roki Inc uses the periodic inventory system. June 1 On hand, 50 units @ $15.00 each $ 750.00 5 Purchased 115 units @ $15.10 each 1,736.50 14 Purchased 75 units @ $15.20 each 1,140.00 Total cost of goods available for sale $3,626.50 30 On hand, 90 units If the June 30th inventory included 45 units from the June 5th purchase and 45 units from the June 14th purchase, Roki's cost of goods sold for
June under the specific identification method would be a. $2,945.00 b. $3,626.50 c. $2,263.00 d. $2.373.00
Management would not use the statement of cash flows to
a. assess the liquidity of the business. b. determine dividend policy. c. evaluate the effects of major policy decisions involving investments and financing. d. determine the financial position of the company.
Companies generally are not concerned about the link between their investments in marketing efforts and their sales results
Indicate whether the statement is true or false
Byron agrees to sell to Charity, for $1,500, a remote parcel of land. They be-lieve the land to be worthless, but beneath it is a gold mine. Byron can
a. notrescind the contract. b. rescind the contract on the basis of fraud. c. rescind the contract on the basis of mistake. d. rescind the contract on the basis of undue influence.