Mae-mae Company operates two restaurants, one in Manila and one in Cebu. The operations and cash flows of each of the two restaurants are clearly distinguishable. During 2018, Mae-mae decided to close the Cebu restaurant and sell the property. It is probable that the disposal will be completed early next year. The revenue and expenses for 2018 and for the preceding two years are as follows:

SALES	2018	2017	2016
MANILA	60,000	48,000	40,000
CEBU	23,0000	30,000	52,000

COST OF GOODS SOLD	2018	2017	2016
MANILA	26,000	22,000	18,000
CEBU	14,000	19,000	20,000

OTHER EXPENSE	2018	2017	2016
MANILA	14,000	13,000	12,000
CEBU	17,000	16,000	15,000

The other expenses exclude income tax expense. During the latter part of 2018, the entity sold some of the kitchen equipment of the Cebu restaurant and recognized a pre-tax gain of P15,000 on the sale. The income tax rate is 30%.

1. What amount should be reported as income from continued operations for 2018? A. 27,000 B. 20,000 C. 18,900 D. 14,000 2. What amount should be reported as income or loss from discontinued operations for 2018? A. 4,900 income B. 4,900 loss C. 7,000 income D. 7,000 loss

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