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Zubair Company had two operating divisions. One division involves building construction and the other division involves sale of motor bikes. The motor bike division, to
Zubair Company had two operating divisions. One division involves building construction and the other division involves sale of motor bikes. The motor bike division, to date, has not been a profitable business segment for the company. As such, on September 1st, 2019 the company created a plan to dispose of the assets of the motor bike division. The sale was completed on December 1st 2019 at a price of RO 2,000,000 The book value of the division's assets was RO 2,500,000. The division incurred a before tax operating loss from operations of RO 300,000. The income tax rate for the company is 15%. The after tax income from continuing operations is RO 1,000,000 for 2019. You are required to identify from the following the net income of Zubair company. A. OMR 850,000 B. OMR 170,000 C. None of the other options D. OMR 680,000
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