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Charming Charlie's, Inc

Question 60

Multiple Choice

Charming Charlie's, Inc. is going to discontinue one of its manufacturing divisions. At the time of discontinuance, the division's assets with a book value of $1,000,000 are sold for $750,000 and operating income amounted to $145,000. Ignoring income taxes, what total amount should be reported on the income statement as discontinued operations?


A) $105,000 loss
B) $250,000 loss
C) $395,000 loss
D) $145,000 gain

Correct Answer:

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