Please help me answer these problem with solution. Thank you
Problem 33-5 (AICPA Adapted) On December 31, 2020, Max Company committed to a plan to Problem 33-7 Multiple choice (IFRS) discontinue the operations of Underwear Division. 1. Which criterion doe The fair value of the facilities was P1,000,000 less than rion does not have to be met in order for an operation to be classified as discontinued? carrying amount on December 31, 2020. The division was actually sold for P1, 200,000 less than a. The operation shall represent a separate major line of b . business or geographical area. carrying amount in 2021. The division's operating loss for 2020 was P2,000,000. The The operation is part of a single plan to dispose of a entity estimated that the division's operating loss for 2021 C. separate major line of business or geographical area. would be P500,000. The operation is a subsidiary acquired exclusively with a view to resale. What amount should be reported as pretax loss from discontinued operation in 2020? d. The operation must be sold within three months after . the end of reporting period. a. 3,000,000 b. 2,000,000 2. What is the presentation of the results from discontinued operation in the income statement? C. 1,000,000 d. 3,200,000 a. The entity sha y shall disclose a single amount on the face Problem 33-6 (LAA) of the income statement below the income from continuing operations. Vernon Company had two operating divisions; one b. equipment and the other office supplies, The amounts from discontinued operations shall be manufacturing farm equi Both divisions are considered separate components. expense . broken down over each category of revenue and The farm equipment component had been unprofitable and C. on September 1, 2020, the entity adopted a plan to sell the Discontinued operations shall be shown as a d. movement on retained earnings. assets of the division. Discontinued operations shall be shown as a line item The actual sale was effected on December 15, 2020 at a price after gross income with the related tax being shown of P3,000,000. The carrying amount of the division's assets as part of income tax expense. was P5,000,900. The farm equipment division incurred before-tax operating 3. Which statement is incorrect concerning the loss of P1, 500,000 from the beginning of the year through presentation of the discontinued operation in the December 15, 2020. statement of financial position? The entity's after-tax income from continuing operations is P9,000,000. The income tax rate is 30%. a. Assets of the component held for sale are presented separately under current assets. What amount should be reported as net income for the b. Assets of the component held for sale are measured current year? at the lower between fair value less cost of disposal and carrying amount. a. 5,500,000 b. 6,550,000 Liabilities of the component held for sale are C. 6,300,000 Boot 090 008 presented separately under current liabilities. d. 7,600,000 d. Depreciable assets of the component held for sale shall be depreciated
