Question

Help Save & Exit Submit On August 1, 2021, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2022. On January 31, 2022, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2021-Jan. 31, 2022 Estimated operating losses, Feb. 1-June 30, 2022 Impairment of division assets at Jan. 31, 2022 $134,000 89,000 26,000 In its income statement for the year ended January 31, 2022. Rocket would report a before-tax loss on discontinued operations of: Multiple Choice $(134,000) 6 $223,000)

Answer 1

Option 1 : $ (134,000)

Includes the following (net of tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

In this case dicontinuation completing june 30 hence the loss from feb to jun 2020 will be comes in next year