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Rufina [12.5K]
3 years ago
7

Pascoreli Clothing is a clothing component of Lucha Libre, Inc. Pascoreli has been losing $35,000 per month since April 1 20X7.

On May 31, 20x8, Lucha Libre’s management committed to an immediate sale of Pascoreli. Management expects to find a buyer before March 31, 20x9. Lucha Libre has estimated Pascoreli’s net assets have a fair value $1,300,000 and the book value of the group’s assets is $1,700,000. Lucha Libre sold Pascoreli on April 30, 20x9 for $1,100,000. What amount if any would Lucha Libre report from discontinued operations before taxes for the year ended December 31, 20x8
Business
1 answer:
lora16 [44]3 years ago
5 0

Answer:

ZERO as the operations for Pascoreli continues. Lucha Libre considers Pascoreli Clothing a non.current asset held for sale which is a diferent accounting topic.

Explanation:

Lucha Libre did not stop the operations neither plans to stop them It wants to sale the division not to shut down therefore their result will impact net income directly rather than being discounued operations.

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