Suppose that the Footwear Division's assets had not been sold by December 31,2016,but were considered held for sale.Assume that the fair value of these assets at December 31 was $80 million.In the 2016 income statement for Foxtrot Co. ,under discontinued operations it would report a:
A)$ 6 million loss.
B)$ 10 million loss.
C)$13.2 million income.
D)None of the other answers is correct.

Question

Quizplus · Accepted Answer

The loss is calculated as the carrying amount of the assets minus their fair value. If the carrying amount was $86 million and the fair value is $80 million, the loss is $6 million.

Suppose That the Footwear Division's Assets Had Not Been Sold