Question
On December 31, 20x9, Pathos Food Services management decided to sell the Baclava division which has book value of $810,000. Management believes the division can
On December 31, 20x9, Pathos Food Services management decided to sell the Baclava division which has book value of $810,000. Management believes the division can be sold for $705,000 after spending $101,000 in sales costs. Baclava reported a monthly income of $29,000 in 20X9 and a monthly loss of $11,000 in 2x10. The division meets the rules to be classified as an asset held for sale as well as qualifying as a discontinued operation. The division sold for $692,000 on March 31, 2x10. Ignore income taxes. What does the company report as discontinued operations in 2x10?
- A.
(33,000) loss
- B.
(11,000) loss
- C.
(13,000) loss
- D.
(46,000) loss
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