Keywords: FASB codification; financial reporting; discontinued operations; restructuring. THE CASE I a meeting with shareholders in Q1 of 2017, Dynamic Inc. CEO Austin Cruz discussed the company's 2016 perfomaa and then shifted to a discussion about the future of the company: Dynamic Inc. has routinely set the standards of excellence in the business world, and this year, we will make a bold move that I believe will have a positive impact on our shareholders and promote sustainable practices that will set a new standard for global conglomerates. Growing carbon emissions present a major problem for the sustainability of global communities, and we at Dynamic have a responsibility to be at the forefront of this issue. This year, we will begin focusing our business portfolio on companies that offer sustainable products and services. To make this strategic transition a success, it is important that we "walk the walk" and include companies in our portfolio that run responsible and sustainable business operations, and set high standards for the usage of natural resources. We have the most qualified team of experts who regularly eye the equity markets for profitable investments. I have asked them to seek out "win-win" opportunities that enhance our growth and accomplish our shift in focus, We will also be reviewing our existing subsidiaries on similar standards on ensure that Dynamic is the global leader in sustainable business operations as well as sustainable products and services. Dynamic Ine. Background Dynamic Inc. is a global conglomerate headquartered in the United States. The company operates subsidiary companies throughout the world in a wide array of industries. While the company originally started operations in the oil/gas industry back in 1978, the company has shifted its focus over the years to managing a large portfolio of companies within the oilvgas industry, as well as in other sectors. Dynamic has a team of experienoed business valuation experts who have specializations in several industries. These professionals serve the company by (1) keeping close tabs on the public and private equity markets for key acquisition opportunities that could potentially result in significant revenue and eamings growth for Dynamic and (2) reviewing the performance and direction of eurrently owned subsidiaries to determine whecher the companies ane meeting the performance standards set forth by Dynamic. As such. Dynamic regularly acquires other companies that are judged to be profitable investments. However, the company has a strict policy of owning 100 percent of the stock in these companies, as manapement is not interested in working with non-controlline interests. Furthermore, the company has spun off several subsidiaries in the past, because management considered them to be underperforming. The following table illustrales the acquisition and disposal activity of the company in the ten years prior to 2017. Additionally, the 2016 total revenues, year-end assets, and Scope 1 and _carbon emissions' for each segment are: 20 Consulting Services ZD offers a variety of services for a broad base of clients in the areas of valuation, market research, and business pla implementation. ZD professionals spend significant time at client sites performing these services. The following table provide a breakdown of ZD's clients by industry: Dynantic Divestures: A Codification Exercise on the Reporting of Disconvinued Operations (i.e., transportation, lodging, meals, etc.) of the professionals as they carry out their commitments for clients. Although ZD revenue growth has been sluggish in recent years, the company is responsible for approximately 20 percent of Dynamic's tot: revenues. Furthermore, ZD's eamings represent 10 percent of Dynamic's bottom line, and this relationship has not changed fo the past five years. During the first quarter of 2017. Dynamic became aware of market curiosity in ZD. In particular, a market competito displayed considerable interest in purchasing the company. Intrigued by the level of attention. Dynamic management consentec to initial due diligence, and in the process, it was revealed that the potential purchaser was especially drawn to the oil/gas services offered by ZD. Furthermore, the compctitor informally indicuted that this aspect of the business would fit well with its existing portfolio of clients within traditional oil/gas operations and channels. Ultimately. Dynamic received a very sarong offer from the competitor for 100 percent of the shares of 7D, and on October 17. 2017, the sales transaction was completed. With the sale of ZD. the Consulting segment of Dynamic consisted of only one company as of the end of 2017 . This one remaining firm specializes in tinuncial consulting for cducational product companies. Specifically, professionals from this fimm advise clients on a number of financial issues including intangible asset valuations. financial reporting compliance, and XBRL reporting. Hope Industries Hope Industries operntes within Dynamic's Consumer Products segment, which includes five other subsidiaries. Two of the other flve companies offer different types of tavel products. with one manufacturing and selling deluxe luggage and the other specializing in travel food and beverage containers. Another company in the scgment offers sporting goods and apparel, while a different entity within the same niche sells athietic supplies and equipment used by athletic trainers. Finally, another company serves the market for home products. producing and selling home dicor items such as scented candles and authentic picture frames. Overall, this sector has reported relatively slow growth during the past two years across all companies. Thus far, Dynamic management has no plans to dispose of these other flve companies within the Consumer Products segment. Hope Industries primarily manufactures and sells a variety of residential home products. Most notably, the company makes high-end home-improvement necessities such as painting trays, paint brushes, and other home maintenance goods. The syathetic materials used in these products are highly dumble and can withstand very high temperatures resulting from the sanitation process, thus allowing consumers to maintain these producti for an exienive period and through many projects, In onder to produce such goods that pass durability tests and meet consumer expectations for design. the company uses a complicated and extensive injection-molding process. As such, the production envirumment requires large machinery along the compicalea and exienisive injection-molding process. As such, the production environment requires large machinery along the assembly line and the molding process demands extreme temperatures in order to achieve the end result. Because of the elaborale design of many of the produets, the company follows a complex, yet disciplined distribution process that includes extensive use of protective packaging materials (i.e., Styrofoam). In doing so, the company streamlined the distribution process so that there is very little spollage of products as they move through the supply chain. Ultimately, though, Hope Industries reports one of the five largest Scope 1 and 2 carbon cmissions levels of all the companies included in Dynamic's portfolio of subsidiaries. These carbon levels also surpass the other five companies within the Consumer Products segment, as those companies emit carbon in relatively similar amounts. Hope operates in a very competitive market, which includes many other compenies that offer swch products. In addition, Hope faces theats from companies that manufacture similar products that are of a less-fumble nature, but are sold at a lower price. During the last five years, consumers have indicated a preference for these less-durable products in order to allocaie their disposable income to other products and activities. As such, Hope, which has always operated on tight margins, has seen its profits diminish. During 2016, the company reported an overall loss on its income statement. joining the other home products company as the only two within the Consumer Products segment to post net losves. In January 2017, Dynamic management became interested in a budding phenomenon: disposabie kitchenware products. In conducting market research, Dynamic professionals concluded that consumers desired products such as cpatulas, miking howls. ete. that are designed for one-time use. Moetings with a local research and development (RiED) firm that was currently workins on a process to produce similar lypes of goods that are cco-fricndly confimmed this decision- Such convenience would allow consumen to accomplish their personat culinary goals without the havile of cleaning kitchenware. Consistent with CEO Crur's focus outlined in the shareholder meetine. Dvonamic set out to acouire the necccsarv technoloov fimm the RkeD firm. tailor it specifically to kitchenware products, and produce those goods in an eco-friendly fashion. Ultimately, the company made the decision to move forward with plans to produce these products with recycled and biodegradable materials. A lingering issue, however, was the location of this new manufacturing operation. Upon funther review, Dynamic management determined that it possessed the infrastructure (manufacturing facilities) within Hope Industries to support this venture. However, in order to produce the new products, management was aware that it must (1) suspend all manufacturing of Hope's current product mix and (2) completely replace the machinery currently used at Hope. Additionally, the new manufacturing process would require a certain type of skilled labor that the Hope employees do not presently possess. One of the hallmarks of Dynamic. within the sphere of conglomerate organizations, is the fair treatment of its personnel across all subsidiaries. Along those lines, Dynamic management detemined that the temmination of current employees to fucilitate the required skills was not an option. Rather, Dymamic proposed a large-scale investment in Hope by establishing a comprehensive training program for all of its curment employoes. The program provided the necessary education for the laborers to acquire the appropriate skills for the manufacturing process. Additionally, the company supplied truining to support staff (i.e., accounting. HR, IT, etc.). In order to make this switch to kitchenware products a reality. Dynamie's management approached a neighboring competitor that manufactures the less-durable version of the home improvement products. The competitor expressed an interest in expanding to the highly durable products cumently offered by Hope. On May 14, 2017. the competitor agreed to a layered purchase of Hope's inventory, lixed assets (including machinery, equipment, and patents), infomation about manufacturing processes, and limited support information (includiag the parchasing and sales modules of the accounting system), according to the following schedule: Hope suspended its production of residential products on May 14, 2017. In the midst of the trunsaction with the competitor, Hope continued to sell the remaining inventory, per the agrement, until August 30. 2017, at which time the competitor assumed the remaining inventory. During this process, Hope purchased plans from the local R\&D firm, instituted training programs for personnel, and purchased machinery/equipment that was conducive to the manufacture of the new kitchenware products. Manufacturing of the kitchenware products commenced in the middle of July 2017. Due to the overlap between the suspension of activities related to the residential products and the commencement of kitchenware production, Hope accounting personnel were unable to efficiently separate the specitic support operations (aside from the sale of the inventory) of the two activities for the second half of 2017 within the accounting system. However, the staff was able to estimate the costs of these separate operations based upon trends from prior years. According to Dynamic's global responsibility report for 2017. carbon emissions for Hope dropped slightly in Q4. While Dynamic believes that the new focus on kitchenware will prove a wise investment, the compuny expects a retum to profitability to be a multi-year process. During the next year. Dynamic plans to change Hope Industries" name to Hope Home Products, Ine. A.M Mining Operations Dynamic owns a copper mining operation in the southwestern region of the United States. The operation includes several properties that are actively mining and producing copper, and the most fucrative of them all is one that accounts for 80 percent of the production. The name of this mine is Abby Marie (AM). the source of the company 's formal name. While the company is very profitable, it also has a substantial impact on the cnvironmeot, and ia the past several years. AM has reported one of the five largest Scope 1 and 2 carbou cmissions among Dynamie companies. Furchennore, AM is subject to significant regulations that are related to environmental and safety issues. As an eximple. AM is reyuired to complete a round of regulatory audits at about the same time every five years. These audits focus on kcy issues such as the environmeatal impact of AM's mining activities, occupational hazard and safety accreditation, and hazardous waste certifications. AM management is committed to fucilitating these regulatory activitich, as these audits are a crucial pioce of the company business plan, In fact, the company has received "clean" audit results on each audit since the company's inception. The regulators have notified AM management that a new round of audits will commence during 2018. Normally, the regulators schedule their work toward the end of the year. however, they will schedule the audit earlier in the year if the company has scheduling issues or other cxienuating circumstances exist. These regulatory activities are very extensive, often resulting in multiple site visits and significant costs. As such. the process of facilitating the govemment inspections to the receipt of the different agencies' reports can take up to nine months, depending upon the level of complications that arise. In Q2 of 2017, Dynamic made the decision to put the company up for sale. Management believes that AM has a sales value consistent with an camings multiple of 4.3. After obtaining approval to move forward with plans for AM's disposal from the corporate govemance functions of both Dynamic and AM. Dynamic management requested the services of XJ Equity Broker., Inc. to find an interested buyer. While XJ has never brokered a transaction in the mining industry, the firm has represented Dynamic extensively in its merger and acquisition activities. XI professionals indicate that since the mining operations are very unique, they will need to conduct a considenable search to find buyers in the market for such a company. Furthermore, they concluded that management's valuation (i.e. the 4.3 multiple) was much too aggressive. given recent comparative analyses obtained by XJ from their network of resources. As a result. XJ plans to present the AM opportunity to investons with a 3.6 multiple, which the firm feels is a reasonable valuation. Given the nature of AM's operations and the environment in which the company operates, the professionals at XJ believe the sale of AM will likely take several months to complete. Dynamic believes that the management of AM has been very satisfactory, allowing an experienced industry participant to operate AM in its present condition without substantial alierations to the bosiness plan. As of 12/31/17. XJ had found three potential buyers, and two of those interested parties have signed non-diselosure agreements in onder to leam moro about the 1. Consider the facts presented for each company within the case 2. Consult the FASB Accounting Standards Codification (ASC) for guidance on answering the questions listed below 3. Include FASB ASC citations where relevant 4. Your answers to each questions should be in the format of an essay answer. In other words, merely stating a FASB ASC section or writing you answers as bullet points is not sufficient. 5. Use the questions as your outline. For each answer to the questions, state the question and the number of the question. You should go in the order of the questions. a. What is a component of an entity? b. What is at least one example provided in FASB ASC of a group of components of an entity? 2. (24 Points): For each of the entitics below, is the sale or disposition of the business a strategy shift? Why or why not? a. ZD Consulting Services b. Hope Industries c. AM Mining Operations 3. (8 Points): Is AM Mining Operations held for sale or use? Explain your answer. 4. (8 Points): Is AM Mining Operations part of discontinuing operations even though it is not sold? Why or why not? 5. (8 Points): How are discontinuing operations to be reported on an income statement? 6. ( 8 Points): How are discontinuing operations reported on a balance sheet? 7. (8 Points): What should notes about is continuing operations contain? 8. (8 Points): How should gains or losses on sale of assets that are not part of discontinued operations be reported? 9. (8 Points): How should impairment losses on assets that are not part of discontinuing operations be reported on the income statement? Keywords: FASB codification; financial reporting; discontinued operations; restructuring. THE CASE I a meeting with shareholders in Q1 of 2017, Dynamic Inc. CEO Austin Cruz discussed the company's 2016 perfomaa and then shifted to a discussion about the future of the company: Dynamic Inc. has routinely set the standards of excellence in the business world, and this year, we will make a bold move that I believe will have a positive impact on our shareholders and promote sustainable practices that will set a new standard for global conglomerates. Growing carbon emissions present a major problem for the sustainability of global communities, and we at Dynamic have a responsibility to be at the forefront of this issue. This year, we will begin focusing our business portfolio on companies that offer sustainable products and services. To make this strategic transition a success, it is important that we "walk the walk" and include companies in our portfolio that run responsible and sustainable business operations, and set high standards for the usage of natural resources. We have the most qualified team of experts who regularly eye the equity markets for profitable investments. I have asked them to seek out "win-win" opportunities that enhance our growth and accomplish our shift in focus, We will also be reviewing our existing subsidiaries on similar standards on ensure that Dynamic is the global leader in sustainable business operations as well as sustainable products and services. Dynamic Ine. Background Dynamic Inc. is a global conglomerate headquartered in the United States. The company operates subsidiary companies throughout the world in a wide array of industries. While the company originally started operations in the oil/gas industry back in 1978, the company has shifted its focus over the years to managing a large portfolio of companies within the oilvgas industry, as well as in other sectors. Dynamic has a team of experienoed business valuation experts who have specializations in several industries. These professionals serve the company by (1) keeping close tabs on the public and private equity markets for key acquisition opportunities that could potentially result in significant revenue and eamings growth for Dynamic and (2) reviewing the performance and direction of eurrently owned subsidiaries to determine whecher the companies ane meeting the performance standards set forth by Dynamic. As such. Dynamic regularly acquires other companies that are judged to be profitable investments. However, the company has a strict policy of owning 100 percent of the stock in these companies, as manapement is not interested in working with non-controlline interests. Furthermore, the company has spun off several subsidiaries in the past, because management considered them to be underperforming. The following table illustrales the acquisition and disposal activity of the company in the ten years prior to 2017. Additionally, the 2016 total revenues, year-end assets, and Scope 1 and _carbon emissions' for each segment are: 20 Consulting Services ZD offers a variety of services for a broad base of clients in the areas of valuation, market research, and business pla implementation. ZD professionals spend significant time at client sites performing these services. The following table provide a breakdown of ZD's clients by industry: Dynantic Divestures: A Codification Exercise on the Reporting of Disconvinued Operations (i.e., transportation, lodging, meals, etc.) of the professionals as they carry out their commitments for clients. Although ZD revenue growth has been sluggish in recent years, the company is responsible for approximately 20 percent of Dynamic's tot: revenues. Furthermore, ZD's eamings represent 10 percent of Dynamic's bottom line, and this relationship has not changed fo the past five years. During the first quarter of 2017. Dynamic became aware of market curiosity in ZD. In particular, a market competito displayed considerable interest in purchasing the company. Intrigued by the level of attention. Dynamic management consentec to initial due diligence, and in the process, it was revealed that the potential purchaser was especially drawn to the oil/gas services offered by ZD. Furthermore, the compctitor informally indicuted that this aspect of the business would fit well with its existing portfolio of clients within traditional oil/gas operations and channels. Ultimately. Dynamic received a very sarong offer from the competitor for 100 percent of the shares of 7D, and on October 17. 2017, the sales transaction was completed. With the sale of ZD. the Consulting segment of Dynamic consisted of only one company as of the end of 2017 . This one remaining firm specializes in tinuncial consulting for cducational product companies. Specifically, professionals from this fimm advise clients on a number of financial issues including intangible asset valuations. financial reporting compliance, and XBRL reporting. Hope Industries Hope Industries operntes within Dynamic's Consumer Products segment, which includes five other subsidiaries. Two of the other flve companies offer different types of tavel products. with one manufacturing and selling deluxe luggage and the other specializing in travel food and beverage containers. Another company in the scgment offers sporting goods and apparel, while a different entity within the same niche sells athietic supplies and equipment used by athletic trainers. Finally, another company serves the market for home products. producing and selling home dicor items such as scented candles and authentic picture frames. Overall, this sector has reported relatively slow growth during the past two years across all companies. Thus far, Dynamic management has no plans to dispose of these other flve companies within the Consumer Products segment. Hope Industries primarily manufactures and sells a variety of residential home products. Most notably, the company makes high-end home-improvement necessities such as painting trays, paint brushes, and other home maintenance goods. The syathetic materials used in these products are highly dumble and can withstand very high temperatures resulting from the sanitation process, thus allowing consumers to maintain these producti for an exienive period and through many projects, In onder to produce such goods that pass durability tests and meet consumer expectations for design. the company uses a complicated and extensive injection-molding process. As such, the production envirumment requires large machinery along the compicalea and exienisive injection-molding process. As such, the production environment requires large machinery along the assembly line and the molding process demands extreme temperatures in order to achieve the end result. Because of the elaborale design of many of the produets, the company follows a complex, yet disciplined distribution process that includes extensive use of protective packaging materials (i.e., Styrofoam). In doing so, the company streamlined the distribution process so that there is very little spollage of products as they move through the supply chain. Ultimately, though, Hope Industries reports one of the five largest Scope 1 and 2 carbon cmissions levels of all the companies included in Dynamic's portfolio of subsidiaries. These carbon levels also surpass the other five companies within the Consumer Products segment, as those companies emit carbon in relatively similar amounts. Hope operates in a very competitive market, which includes many other compenies that offer swch products. In addition, Hope faces theats from companies that manufacture similar products that are of a less-fumble nature, but are sold at a lower price. During the last five years, consumers have indicated a preference for these less-durable products in order to allocaie their disposable income to other products and activities. As such, Hope, which has always operated on tight margins, has seen its profits diminish. During 2016, the company reported an overall loss on its income statement. joining the other home products company as the only two within the Consumer Products segment to post net losves. In January 2017, Dynamic management became interested in a budding phenomenon: disposabie kitchenware products. In conducting market research, Dynamic professionals concluded that consumers desired products such as cpatulas, miking howls. ete. that are designed for one-time use. Moetings with a local research and development (RiED) firm that was currently workins on a process to produce similar lypes of goods that are cco-fricndly confimmed this decision- Such convenience would allow consumen to accomplish their personat culinary goals without the havile of cleaning kitchenware. Consistent with CEO Crur's focus outlined in the shareholder meetine. Dvonamic set out to acouire the necccsarv technoloov fimm the RkeD firm. tailor it specifically to kitchenware products, and produce those goods in an eco-friendly fashion. Ultimately, the company made the decision to move forward with plans to produce these products with recycled and biodegradable materials. A lingering issue, however, was the location of this new manufacturing operation. Upon funther review, Dynamic management determined that it possessed the infrastructure (manufacturing facilities) within Hope Industries to support this venture. However, in order to produce the new products, management was aware that it must (1) suspend all manufacturing of Hope's current product mix and (2) completely replace the machinery currently used at Hope. Additionally, the new manufacturing process would require a certain type of skilled labor that the Hope employees do not presently possess. One of the hallmarks of Dynamic. within the sphere of conglomerate organizations, is the fair treatment of its personnel across all subsidiaries. Along those lines, Dynamic management detemined that the temmination of current employees to fucilitate the required skills was not an option. Rather, Dymamic proposed a large-scale investment in Hope by establishing a comprehensive training program for all of its curment employoes. The program provided the necessary education for the laborers to acquire the appropriate skills for the manufacturing process. Additionally, the company supplied truining to support staff (i.e., accounting. HR, IT, etc.). In order to make this switch to kitchenware products a reality. Dynamie's management approached a neighboring competitor that manufactures the less-durable version of the home improvement products. The competitor expressed an interest in expanding to the highly durable products cumently offered by Hope. On May 14, 2017. the competitor agreed to a layered purchase of Hope's inventory, lixed assets (including machinery, equipment, and patents), infomation about manufacturing processes, and limited support information (includiag the parchasing and sales modules of the accounting system), according to the following schedule: Hope suspended its production of residential products on May 14, 2017. In the midst of the trunsaction with the competitor, Hope continued to sell the remaining inventory, per the agrement, until August 30. 2017, at which time the competitor assumed the remaining inventory. During this process, Hope purchased plans from the local R\&D firm, instituted training programs for personnel, and purchased machinery/equipment that was conducive to the manufacture of the new kitchenware products. Manufacturing of the kitchenware products commenced in the middle of July 2017. Due to the overlap between the suspension of activities related to the residential products and the commencement of kitchenware production, Hope accounting personnel were unable to efficiently separate the specitic support operations (aside from the sale of the inventory) of the two activities for the second half of 2017 within the accounting system. However, the staff was able to estimate the costs of these separate operations based upon trends from prior years. According to Dynamic's global responsibility report for 2017. carbon emissions for Hope dropped slightly in Q4. While Dynamic believes that the new focus on kitchenware will prove a wise investment, the compuny expects a retum to profitability to be a multi-year process. During the next year. Dynamic plans to change Hope Industries" name to Hope Home Products, Ine. A.M Mining Operations Dynamic owns a copper mining operation in the southwestern region of the United States. The operation includes several properties that are actively mining and producing copper, and the most fucrative of them all is one that accounts for 80 percent of the production. The name of this mine is Abby Marie (AM). the source of the company 's formal name. While the company is very profitable, it also has a substantial impact on the cnvironmeot, and ia the past several years. AM has reported one of the five largest Scope 1 and 2 carbou cmissions among Dynamie companies. Furchennore, AM is subject to significant regulations that are related to environmental and safety issues. As an eximple. AM is reyuired to complete a round of regulatory audits at about the same time every five years. These audits focus on kcy issues such as the environmeatal impact of AM's mining activities, occupational hazard and safety accreditation, and hazardous waste certifications. AM management is committed to fucilitating these regulatory activitich, as these audits are a crucial pioce of the company business plan, In fact, the company has received "clean" audit results on each audit since the company's inception. The regulators have notified AM management that a new round of audits will commence during 2018. Normally, the regulators schedule their work toward the end of the year. however, they will schedule the audit earlier in the year if the company has scheduling issues or other cxienuating circumstances exist. These regulatory activities are very extensive, often resulting in multiple site visits and significant costs. As such. the process of facilitating the govemment inspections to the receipt of the different agencies' reports can take up to nine months, depending upon the level of complications that arise. In Q2 of 2017, Dynamic made the decision to put the company up for sale. Management believes that AM has a sales value consistent with an camings multiple of 4.3. After obtaining approval to move forward with plans for AM's disposal from the corporate govemance functions of both Dynamic and AM. Dynamic management requested the services of XJ Equity Broker., Inc. to find an interested buyer. While XJ has never brokered a transaction in the mining industry, the firm has represented Dynamic extensively in its merger and acquisition activities. XI professionals indicate that since the mining operations are very unique, they will need to conduct a considenable search to find buyers in the market for such a company. Furthermore, they concluded that management's valuation (i.e. the 4.3 multiple) was much too aggressive. given recent comparative analyses obtained by XJ from their network of resources. As a result. XJ plans to present the AM opportunity to investons with a 3.6 multiple, which the firm feels is a reasonable valuation. Given the nature of AM's operations and the environment in which the company operates, the professionals at XJ believe the sale of AM will likely take several months to complete. Dynamic believes that the management of AM has been very satisfactory, allowing an experienced industry participant to operate AM in its present condition without substantial alierations to the bosiness plan. As of 12/31/17. XJ had found three potential buyers, and two of those interested parties have signed non-diselosure agreements in onder to leam moro about the 1. Consider the facts presented for each company within the case 2. Consult the FASB Accounting Standards Codification (ASC) for guidance on answering the questions listed below 3. Include FASB ASC citations where relevant 4. Your answers to each questions should be in the format of an essay answer. In other words, merely stating a FASB ASC section or writing you answers as bullet points is not sufficient. 5. Use the questions as your outline. For each answer to the questions, state the question and the number of the question. You should go in the order of the questions. a. What is a component of an entity? b. What is at least one example provided in FASB ASC of a group of components of an entity? 2. (24 Points): For each of the entitics below, is the sale or disposition of the business a strategy shift? Why or why not? a. ZD Consulting Services b. Hope Industries c. AM Mining Operations 3. (8 Points): Is AM Mining Operations held for sale or use? Explain your answer. 4. (8 Points): Is AM Mining Operations part of discontinuing operations even though it is not sold? Why or why not? 5. (8 Points): How are discontinuing operations to be reported on an income statement? 6. ( 8 Points): How are discontinuing operations reported on a balance sheet? 7. (8 Points): What should notes about is continuing operations contain? 8. (8 Points): How should gains or losses on sale of assets that are not part of discontinued operations be reported? 9. (8 Points): How should impairment losses on assets that are not part of discontinuing operations be reported on the income statement
