Question 10 On August 1, 2009, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to SFAS No. 144. The disposal of the division was expected to be concluded by June 30, 2010. On January 31, 2010, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Year 2007 2008 2009 FIFO $120,000 140,000 150,000 Average Cost $110,000 128,000 144,000 Difference $10,000 12,000 6,000 In its income statement for the year ended January 31, 2010, Rocket would report a before-tax loss on discontinued operations of: a) $115,000. b) $195,000 c) $ 65,000. d) $125,000. Question 10 On August 1, 2009, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to SFAS No. 144. The disposal of the division was expected to be concluded by June 30, 2010. On January 31, 2010, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Year 2007 2008 2009 FIFO $120,000 140,000 150,000 Average Cost $110,000 128,000 144,000 Difference $10,000 12,000 6,000 In its income statement for the year ended January 31, 2010, Rocket would report a before-tax loss on discontinued operations of: a) $115,000. b) $195,000 c) $ 65,000. d) $125,000