Question
During 2023, Avocado Inc. decided to dispose of Lemon Division, considered a separate reportable segment. Avocado estimates it can sell Lemon at a loss of
During 2023, Avocado Inc. decided to dispose of Lemon Division, considered a separate reportable segment. Avocado estimates it can sell Lemon at a loss of $10,000, which it does on May 1, 2023. Lemon's operating income in 2023 was $18,000. Ignoring taxes, Avocado's income statement for the year ended December 31, 2023 should report
only the income from Avocado's other divisions.
Since it no longer owns Lemon at December 31, Avocado does not need to report anything relating to Lemon's operations during the year.
the $18,000 operating income in the body of the income statement and the $10,000 loss in the discontinued operations section of the income statement.
the $18,000 operating income and the $10,000 loss in the body of the income statement.
the $18,000 operating income and the $10,000 loss in the discontinued operations section of the income statement.
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