Question
On January 1, 2020, Bellair Ltd. decided to discontinue its plastics making division. The division, considered a reportable segment, was sold on June 1,
On January 1, 2020, Bellair Ltd. decided to discontinue its plastics making division. The division, considered a reportable segment, was sold on June 1, 2020. Division assets with a carrying value of $812,500 were sold for $625,000. Operating income from January 1 to May 31 for the division was $62,500. Their income tax rate is 25%. What amount should be reported on Bellair's income statement for the year ended December 31, 2020, under the caption "discontinued operations"? O a. $62,500 gain O b. $93,750 loss O c. $125,000 loss O d. $187,500 loss
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