Anderson, Inc., a large distributor of grocery items, committed to disposing of one of its subsidiaries,...
Anderson, Inc., a large distributor of grocery items, committed to disposing of one of its subsidiaries, James' Cookies. The September 30, 20X2 plan for disposing of James' Cookies meets all of the requirements to be classified as a discontinued operation. The carrying value of James' Cookies was $5,000,000 on September 30, 20X2. Anderson, Inc. estimated the fair value of James' Cookies less associated costs of selling to be $3,000,000. James' Cookies reported an operating loss of $1,500,000 on Dec. 31, 20X2. How much loss from discontinued operations should Anderson, Inc. report on its income statement for 20X2? (Hint: ignore income taxes for this problem.)
Homework Answers
|
Discontinued operations: |
|
|
Loss from operations |
$1500000 |
|
Loss on disposal (5000000-3000000) |
2000000 |
|
Total loss on discontinued operations |
$3500000 |
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Anderson, Inc., a large distributor of grocery items, committed
to disposing of one of its subsidiaries,...
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