Question
On November 1, 2024, Jamison Incorporated adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to
On November 1, 2024, Jamison Incorporated 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, 2025. On December 31, 2024, the company's year-end, the following information relative to the discontinued division was accumulated:
| Operating loss January 1December 31, 2024 | $ 83 | million |
|---|---|---|
| Estimated operating losses, January 1 to April 30, 2025 | 93 | million |
| Excess of fair value, less costs to sell, over book value on December 31, 2024 | 12 | million |
In its income statement for the year ended December 31, 2024, Jamison would report a before-tax loss on discontinued operations of:
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Cornerstones Of Financial Accounting
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone
3rd Canadian Edition
017689859X, 9780176898595
