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ryzh [129]
3 years ago
8

Susan Inc. has been disappointed with the Willow Division's performance over the last few years and has decided that it would be

best to sell the division. As of December 31, 2019 the Willow divison is considered to be held for sale. The division's loss from operations for 2019 was $1,800,000. The division's book value and fair value less cost to sell on December 31 were $3,080,000 and $2,320,000, respectively. What should the company report as loss on discontinued operations (before tax) on its 2019 income statement
Business
1 answer:
labwork [276]3 years ago
3 0

Answer:

$2,560,000

Explanation:

impairment loss = division's book value - division's fair market value = $3,080,000 - $2,320,000 = $760,000

Assets held for sale are no longer depreciated, but they must be recorded at lower value between carrying cost and fair market value. Since the fair market value is lower than carrying value, then an impairment loss results.

loss on discontinued operations = loss from operations 2019 + impairment loss = $1,800,000 + $760,000 = $2,560,000

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Answer:

Kindly check explanation

Explanation:

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4 0
3 years ago
Based on the corporate valuation model, gray entertainment's total corporate value is $1,150 million. the company's balance shee
vagabundo [1.1K]

Answer:

$26.67 million

Explanation:

The computation of price per share is shown below:-

Total market value = $1,150 million + $120 million

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Market value of equity = Total market value - value of debt - value of preferred stock

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3 years ago
What is a online profile?<br> 20 pts!!
velikii [3]
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8 0
3 years ago
9. Emil Motycka is considered an entrepreneur because
Nataliya [291]

Answer:

he started and managed a business.

Explanation:

Entrepreneur is the person who is willing to take risk by putting his capital to create and operates business.

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3 years ago
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