Question
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started