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Millennium LLC Company had two operating divisions. One division manufactured Foot-ball and the other division manufactured cricket ball. As per GAAP 5, each division is
Millennium LLC Company had two operating divisions. One division manufactured Foot-ball and the other division manufactured cricket ball. As per GAAP 5, each division is considered separate segments. The foot-ball 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 foot -ball division. The sale was completed on December 1st December -2018 at a price of RO 650,000. The book value of the division's assets was RO 750,000. The division incurred a before tax operating profit from operations of RO 250,000 from the beginning of the year through December 1st, 2018. The after-tax income from continuing operations is RO 4,00,000 for 2018.The income tax rate for the company is 15%. a. Calculate the Net effect on the disposal of segments. Profit OMR 150,000 Loss OMR 110,000 Loss OMR 150,000 None of the listed choices b. Calculate the income tax benefits/expenses from the segmenti b. Calculate the income tax benefits/expenses from the segment. ho . None of the listed choices Expenses OMR 22,500 Expenses OMR 32,500 Benefit OMR 127,500 C. Calculate the net income for the year 2018, c. Calculate the net income for the year 2018. OMR 272,000 None of the listed choices OMR 400,000 OMR 527,500
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