Zebra Company isa a diversified entity with nationwide interest

Problem 33-3 (IFRS) Zebra Company is a diversified entity with nationwide interests in commercial real estate development, banking, mining and food distribution. The food distribution division was deemed to be inconsistent with the long-term direction of the entity. On October 1, 2020 the board of directors voted to approve the disposal of this division. The sale is expected to occur in August 2021. The food distribution had revenue of P35,000,000 and expenses of P27,000,000 for the period January 1 to September 30, and revenue of P15,000,000 and expenses of P10,000,000 for the period October 1 to December 31. The carrying amount of the division's net assets on December 31, 2020 was P55,000,000 and the fair value less cost of disposal was P60,000,000. The sale contract required Zebra to terminate certain employees incurring an expected termination cost of P4,000,000 to be paid by December 15, 2021. The income tax rate is 30%. What amount should be reported as income from discontinued operation for 2020? 85000 150 00 1000 0 a. 7,700,000 27000 P ? ! 8,300,000 9,000,000 6,300,000 Problem 33-4 (IAA)What amount should be reported as pretax loss from discontinued operation in 2020? a. 3,000,000 b. 2,000,000 C. 1,000,000 d. 3,200,000 Problem 33-6 (LAA) Vernon Company had two operating divisions, one manufacturing farm equipment and the other office supplies. ' Both divisions are considered separate components. The farm equipment component had been unprofitable and on September 1, 2020, the entity adopted a plan to sell the assets of the division. The actual sale was effected on December 15, 2020 at a price of P3,000,000. The carrying amount of the division's assets was P5,000,000. The farm equipment division incurred before-tax operating loss of P1,500,000 from the beginning of the year through December 15, 2020. The entity's after-tax income from continuing operations is P9,000,000. The income tax rate is 30%. What amount should be reported as net income for the current year? a. 5,500,000 b. 6,550,000 C. 6,300,000 d. 7,600,000 696