Question
On December 1, Year1, Shine Co. agreed to sell an operating segment on March 1, Year2. As a result, the segment qualified as a component
On December 1, Year1, Shine Co. agreed to sell an operating segment on March 1, Year2. As a result, the segment qualified as a component of an entity classified as held for sale. This operating segment represents a major geographical area. Throughout Year1, the segment had operating losses that were expected to continue until its disposition. However, the gain on disposal was expected to exceed the operating segments total operating losses in Year1 and Year2. The amount of estimated net gain from disposal recognized in discontinued operations in Year1 equals
A.
The operating segments December Year1 operating losses.
B.
The entire estimated net gain.
C.
Zero.
D.
All of the operating segments Year1 operating losses.
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