On May 10, 2019, CND Inc. sold off all of its operations in pet food manufacturing, one of its major lines of business....
On May 10, 2019, CND Inc. sold off all of its operations in pet
food manufacturing, one of its major lines of business. From the
sale, CND realized a gain of $100,000. Prior to the sale, pet food
manufacturing incurred a net loss of $200,000. CND's tax rate is
30%. In its 2019 income statement, what will CND record in relation
to pet food manufacturing?
Select one:
a. Loss from discontinued operations, $70,000
b. Loss from continued operations, $140,000
c. Loss from operations of discontinued operation, $70,000
d. Loss from discontinued operation, $100,000
Homework Answers
| Net loss from Operations | (200000) |
| Gain from sale of division | 100000 |
| Loss from discontinued operations before tax | (100000) |
| Income tax (100000 X 30%) | 30000 |
| Loss from discontinued operations | (70000) |
| Option A Loss from discontinued operations, $70,000 is correct | |
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On May 10, 2019, CND Inc. sold off all of its operations in pet food manufacturing, one of its major lines of business....
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