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lapo4ka [179]
3 years ago
9

The Claxton Company manufactures children's toys and also has a division that makes automobile parts. Due to a change in its str

ategic focus, the company sold the automobile parts division. The division qualifies as a component of the entity according to GAAP. How should Claxton report the sale in its 2016 income statement?
a. Report the income or loss from operations of the division in discontinued operations.
b. Report it as a discontinued operation.
c. Report it as restructuring costs.
d. Report it as a gain on sale of investments included in income from continuing operations.
Business
1 answer:
Kryger [21]3 years ago
8 0

Answer:

B. Report it as a discontinued operation.

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dybincka [34]

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Explanation:

Please attached sheet for computation.

Download xlsx
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