On May 1, Jonson Industries decided to discontinue its prepackaged business segment. At the end of the year, the company is still holding the business segment for disposal, which is expected early in the following year. On its year-end income statement, Jonson Industries will report as income from discontinued operations the profits generated by the prepackaged business segment ________.
A) for the entire year, before taxes
B) for the entire year, net of taxes
C) since May 1, before taxes
D) since May 1, net of taxes

Question

Quizplus · Accepted Answer

The income from discontinued operations is reported net of taxes for the entire year, as the decision to discontinue was made during the year and the segment is still held for disposal.

On May 1, Jonson Industries Decided to Discontinue Its Prepackaged