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7. (CPA, adapted) During January year 1, Beta Corp. agreed to sell the assets and product line of its Delta division. The sale was completed on January 15, year 2 and resulted in a gain on disposal of $900,000. Delta's operating losses were $600,000 for year 1 and $50,000 for the period January 1 through January 15, year 2. Disregarding income taxes, and assuming that the criteria for reporting a discontinued operation are met, what amount of net gain (loss) should be reported in Beta's comparative year 2 and year 1 income statements? Year 2 Year 1 A. $0 $250,000 B. $250,000 $0 C. $850,000 $(600,000) D. $900,000 $(650,000) 8. Gamma Company reported 20X1 income of $500,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $120,000. All income is subject to a 30% income tax rate. In the income statement for the year ended December 31, 20X1, Gamma would show the following line-item amounts for income tax expense and net income: A. $114,000 and $266,000, respectively. B. $150,000 and $266,000, respectively. C. $150,000 and $230,000, respectively. D. $114,000 and $380,000, respectively. 9. Omega Company's 20X2 financial statements include net sales of $380,000 and accounts receivable of $80,000. Omega's 20X1 financial statements include net sales of $340,000 and accounts receivable of $72,000. Omega's 20X2 receivables turnover is A. 5.00. B. 5.27. C. 4.75. D. 4.74. 10. Comprehensive income is the change in equity from A. Owner transactions. B. Nonowner transactions. C. Owner and nonowner transactions. D. Capital transactions