Funnies-R-Us,Inc.committed to sell its comic book division (a component of the business)on September 1,2014.The book value of the division's net assets was $400,000 and the fair value of the net assets was $350,000.The disposal date is expected to be June 1,2015.The division reported a net loss of $15,000 for the year ended December 31,2014.Ignoring taxes,choose the correct reporting for discontinued operations in the income statement of Funnies-R-Us,Inc.,for the year ended December 31,2014.

Question

Quizplus · Accepted Answer

The Answer of Funnies-R-Us,Inc.committed to sell its comic book division (a component of the business)on September 1,2014.The book value of the division's net assets was $400,000 and the fair value of the net assets was $350,000.The disposal date is expected to be June 1,2015.The division reported a net loss of $15,000 for the year ended December 31,2014.Ignoring taxes,choose the correct reporting for discontinued operations in the income statement of Funnies-R-Us,Inc.,for the year ended December 31,2014.