During July 2012 Ralston Company decides to dispose of one of its subsidiaries which qualifies for accounting as a discontinued operation. At the July 2012 measurement date Ralston Company estimates that it will report net losses of $1,500,000 dollars from the measurement date until the disposal date which is expected to be in April 2013 . In addition, Ralston estimates that it will lose $300,000

on the sale of the segment. How much gain or loss on discontinued operations will Ralston report in its 2012 income statement (net of income taxes)?
a. $1,500,000 loss
b. $0
c. $1,800,000 loss
d. $300,000 loss


C

Business

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