Question
Company Inc. owned the following business operations for all or part of the current year. 3 warehouses: Northern, Western, and Eastern. a retail store an
Company Inc. owned the following business operations for all or part of the current year.
- 3 warehouses: Northern, Western, and Eastern.
- a retail store
- an amusement park
- a music recording studio
The 3 warehouse operations together (Northern, Western, and Eastern combined) are considered to be a single business component. The retail store, amusement park and music operations are each separate business components. (Note, there is a total of 4 business components.)
Company sold the Western warehouse operation at the beginning of the year and had a loss of $30,000 on the sale. Companysold the amusement park operation at the beginning of the year and had a gain of $25,000 on the sale. Assume both sales represent strategicshifts for Company.
How will the gain and loss be reported on the income statement?
A. | the gain and loss are both reported asother comprehensive income | |
B. | the gain is a discontinued operation;the loss ispart of net income from continuing operations | |
C. | the gain and loss are both reported asdiscontinued operations | |
D. | the gain ispart of net income from continuing operations;the loss is a discontinued operation |
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