Question
On November 1, 2021, Warren Co. adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to
On November 1, 2021, Warren Co. adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by April 30, 2022. On December 31, 2021, the company's year-end, the following information relative to the discontinued division was accumulated:
Operating loss Jan. 1Dec. 31, 2021 | $ | 74 | million | ||
Estimated operating losses, Jan. 1 to April 30, 2022 | 96 | million | |||
Excess of fair value, less costs to sell, over book value at Dec. 31, 2021 | 11 | million | |||
In its income statement for the year ended December 31, 2021, Warren would report a before-tax loss on discontinued operations of:
Multiple Choice
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$170 million.
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$159 million.
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$74 million.
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$63 million.
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