The Claxton Company manufactures children's toys and also has a division that makes automobile parts.Due to a change in its strategic focus,the company sold the automobile parts division.The division qualifies as a component of the entity according to GAAP.How should Claxton report the sale in its 2016 income statement?
A) Report it as restructuring costs.
B) Report it as a discontinued operation.
C) Report the income or loss from operations of the division in discontinued operations.
D) Report it as a gain on sale of investments included in income from continuing operations.
Correct Answer:
Verified
Q32: On August 1,2016,Rocket Retailers adopted a plan
Q33: Which of the following is not true
Q34: The principal benefit of separately reporting discontinued
Q35: In the 2016 income statement for Foxtrot
Q36: Howard Co.'s 2016 income from continuing operations
Q38: The division's book value and fair value
Q39: In the 2016 income statement for Foxtrot
Q40: What is Misty's net income for the
Q41: In the operating activities section of the
Q97: Which of the following is added to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents