On September 1,2012,Ramos Inc.approved a plan to dispose of a segment of its business.Ramos expected that the sale would occur on March 31,2013,at an estimated gain of $350,000.The segment had actual and estimated operating profits (losses as follows):
Assume a marginal tax rate of 30%.
Required:
In its 2012 income statement,what should Ramos report as profit or loss from discontinued operations (net of tax effects)?

Question

On September 1,2012,Ramos Inc.approved a plan to dispose of a segment of its business.Ramos expected that the sale would occur on March 31,2013,at an estimated gain of $350,000.The segment had actual and estimated operating profits (losses as follows):
  Assume a marginal tax rate of 30%.
Required:
In its 2012 income statement,what should Ramos report as profit or loss from discontinued operations (net of tax effects)?

Quizplus · Accepted Answer

The Answer of On September 1,2012,Ramos Inc.approved a plan to dispose of a segment of its business.Ramos expected that the sale would occur on March 31,2013,at an estimated gain of $350,000.The segment had actual and estimated operating profits (losses as follows):
  Assume a marginal tax rate of 30%.
Required:
In its 2012 income statement,what should Ramos report as profit or loss from discontinued operations (net of tax effects)?