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NEW QUESTION: 1
In April 30, 20X4, Deer Corp. approved a plan to dispose of a component of its business. For the period
January 1 through April 30, 20X4, the component had revenues of $500,000 and expenses of $800,000.
The assets of the component were sold on October 15, 20X4 at a loss. In its income statement for the
year ended December 31, 20X4, how should Deer report the component's operations from January 1 to
April 30, 20X4?
A. $300,000 should be reported as an extraordinary loss.
B. $300,000 should be reported as a loss from operations of a component and included in loss from
discontinued operations.
C. $500,000 and $800,000 should be included with revenues and expenses, respectively, as part of
continuing operations.
D. $300,000 should be reported as part of the loss on disposal of a component and included as part of
continuing operations.
Answer: B
Explanation:
Choice "d" is correct. Once the decision has been made to dispose of a component of a business and that
component meets the criteria to be classified as held for sale, the operating results of the component for
the period reported on, and any gain or loss from the disposal, should be reported separately from
continuing operations, net of tax. In this question, the component was classified as held for sale and was
sold in the same year.
Thus, in 20X4, the results of operations, the $300,000 ($500,000-$800,000) loss, are reported as a loss
from discontinued operations. The loss on disposal would be reported as part of that loss from
discontinued operations also.
Choice "a" is incorrect. The results of operations prior to the decision date, and also after the decision
date, are reported separately from the results of continuing operations as a part of discontinued
operations. Choice "b" is incorrect. The results of operations prior to the decision date, and also after the
decision date, are reported separately from the results of continuing operations as a loss from operations
of a component and included in loss from discontinued operations.
Choice "c" is incorrect. The results of discontinued operations are not reported as an extraordinary item.
NEW QUESTION: 2
A. Option A
B. Option B
C. Option F
D. Option C
E. Option D
F. Option E
Answer: C
NEW QUESTION: 3
以下の各ステートメントについて、そのステートメントが正しい場合は「はい」を選択してください。そうでなければ、いいえを選択します。
注：それぞれ正しい選択は1ポイントの価値があります。
Answer:
Explanation:
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