Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hassan LLC Company had two operating divisions. One division manufactured mobile phones and the other division manufactured television. As per GAAP 5, each division is

Hassan LLC Company had two operating divisions. One division manufactured mobile phones and the other division manufactured television. As per GAAP 5, each division is considered separate segments. The mobile phone division, to date, has not been a profitable business segment for the company. As such, on September 1st, 2018 the company created a plan to dispose of the assets of the mobile phone division. The sale was completed on December 1st December 2018 at a price of RO 850,000. The book value of the divisions assets was RO 3,150,000. The income tax rate for the company is 35%. The after tax income from continuing operations is RO 980,000 for 2018. Calculate the net result of discontinued operation.

a- OMR 2,850,000

b-OMR 9,97,500

c-OMR 2,300,000

d-OMR 1,852,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

3rd edition

77826485, 978-0077722074, 77722078, 978-0077826482

Students also viewed these Accounting questions