1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nalin [4]
3 years ago
11

When a company discontinues an operation and disposes of the discontinued operation (component), the transaction should be inclu

ded in the income statement as a gain or loss on disposal reported as:
1. an amount after continuing operations.
2. a bulk sale of plant assets included in income from continuing operations.
3. a prior period adjustment.
4. an extraordinary item.
Business
1 answer:
Ne4ueva [31]3 years ago
4 0

Answer:

1. an amount after continuing operations.

Explanation:

In preparing the income statement the transactions resulting into gain or loss from the discontinued operations are always reported in income statement.

For this there is special heading that is

Amount after continuing operations

This basically reflects the gain or loss from the sale of such segment.

This provides for reporting all the transactions as part of business but in an highlighted manner.

You might be interested in
P10-45. Analyzing and Interpreting Effects of TCJA Tax Law Changes. Pfizer Inc. reports the following footnote disclosure in its
forsale [732]
Woahhhh that’s a lot !!
5 0
3 years ago
Suppose autos cost consumers $30,000 and trucks cost consumers $15,000. What contribution does the production of 200 autos and 2
alexgriva [62]

Answer:

the  contribution made to the production of 200 autos and 200 trucks is $9,000,000

Explanation:

The computation of the contribution made to the production of 200 autos and 200 trucks is shown below

Contribution to GDP is

= $30,000 × 200 + $15,000 × 200

= $6,000,000 + $3,000,000

= $9,000,000

Hence, the  contribution made to the production of 200 autos and 200 trucks is $9,000,000

6 0
3 years ago
Ramos Inc. has total assets of $1,000 and total liabilities of $450 on December 31, 20Y6. Assume that assets increased by $130 a
sukhopar [10]

Answer:

The owner's equity be as of December 31, 20Y7 is $705

Explanation:

In this question, we apply the accounting equation which is given below

Total assets = Total liabilities + shareholder's equity

The question has said that the liabilities are decreased and the assets are increased.

So, the new asset is = total assets + increased amount

                                 = $1,000 + $130

                                 = $1,130

And, So, the new liability is = total liabilities - decreased amount

                                 = $450 - $25

                                 = $425

So, the shareholder equity would be equal to

= $1,130 - $425

= $705

Hence, the owner's equity be as of December 31, 20Y7 is $705

5 0
3 years ago
Owners of defective used cars have more information about the condition of their vehicles than potential buyers of those used ca
lakkis [162]

Answer:

D. asymmetric information.

Explanation:

Owners of defective used cars have more information about the condition of their vehicles than potential buyers of those used cars. This is an example of an asymmetric information.

An asymmetric information can be defined as a situation wherein there's an imperfect flow of information or knowledge between the buyer and the seller of a product; sellers having more knowledge than the buyer of a product.

4 0
3 years ago
A subsidiary can pay only 50% of its profits to its parent company unless the subsidiary's accumulated retained earnings have be
Aleks [24]

Answer:

False

Explanation:

There is no restriction that prohibits the payment of dividends from a subsidiary to a parent company. The parent company has to report the subsidiary's profit as taxable income, so the subsidiary must pay its dividends to the parent company. To avoid multiple layers of taxation, parent companies can use the dividends-received deduction to reduce their taxes on the dividends received. Then the parent company must itself distribute dividends to its shareholders.

7 0
3 years ago
Other questions:
  • Theo works at a fast food restaurant. his boss has asked theo if he is willing to take more shifts. if theo decides to take on t
    6·1 answer
  • How can expectations about the future change consumer behavior?
    13·2 answers
  • Wanda owns a lemonade stand. she produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. her costs per
    14·1 answer
  • What are the pros and cons of relocating a small or midsized manufacturing firm (that makes mature products) from the united sta
    11·1 answer
  • An economy can produce the following combinations of goods: 50X and 0Y, 40X and 10Y, 30X and 20Y, 20X and 30Y, 10X and 40Y, and
    10·1 answer
  • Mia received a credit card offer in the mail. The credit card has an annual percentage rate of 26%. What is the approximate mont
    10·1 answer
  • Loran's pretax accounting income in 20X1 is $100,000. Loran had bad debt expense for financial reporting purposes of $14,000 in
    5·1 answer
  • Assume you decide you should invest at least part of your money in large-capitalization stocks of companies based in the United
    7·1 answer
  • If the united states government lowers the income taxes on the wealthiest americans, while decreasing welfare payments to the po
    15·1 answer
  • a company budgets production of 15,000 solar panels in july. each unit requires 4 hours of direct labor at a rate of $20 per hou
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!