The following information is available about George Inc's discontinued operations: What single amount will be presented on George's statement of comprehensive income?
A)$1,400,000
B)$1,500,000
C)$1,600,000
D)$1,700,000

Question

The following information is available about George Inc's discontinued operations:  What single amount will be presented on George's statement of comprehensive income?
A)$1,400,000 
B)$1,500,000 
C)$1,600,000 
D)$1,700,000

Quizplus · Accepted Answer

The single amount that will be presented on George's statement of comprehensive income is the gain or loss from discontinued operations, which is calculated as follows: 
Sales proceeds: $10,000,000 
Less: Carrying amount of assets sold: $6,000,000 
Less: Costs of disposal: $1,400,000 
Gain from discontinued operations: $2,600,000

Therefore, the correct answer is (C) $1,600,000, which is the gain from discontinued operations after deducting the costs of disposal.

The Following Information Is Available About George Inc's Discontinued Operations