On January 1, 2014, Apricot Ltd.decided to discontinue its plastics making division.The division, considered a reportable segment, was sold on June 1, 2014.Division assets with a carrying value of $650,000 were sold for $500,000.Operating income from January 1, to May 31, 2014 for the division was $50,000.Ignoring taxes, what amount should be reported on Apricot's income statement for the year ended December 31, 2014, under the caption "discontinued operations"?
A)$200,000 gain
B)$150,000 loss
C)$50,000 gain
D)$100,000 loss

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2014, Apricot Ltd.decided to discontinue its plastics making division.The division, considered a reportable segment, was sold on June 1, 2014.Division assets with a carrying value of $650,000 were sold for $500,000.Operating income from January 1, to May 31, 2014 for the division was $50,000.Ignoring taxes, what amount should be reported on Apricot's income statement for the year ended December 31, 2014, under the caption "discontinued operations"?
A)$200,000 gain
B)$150,000 loss
C)$50,000 gain
D)$100,000 loss