Suppose that the Footwear Division's assets had not been sold by December 31, 2009, but were considered held for sale. Assume that the fair value of these assets at December 31 was $80 million. In the 2009 income statement for Foxtrot Co., under discontinued operations it would report a:
A)$ 6 million loss
B)$ 10 million loss
C)$13.2 million income
D)None of these is correct 60% of the $10 million operating loss.There is no impairment of assets and only impairments are included if the assets are still held for sale.

Question

Quizplus · Accepted Answer

The $6 million loss represents 60% of the $10 million operating loss, as there is no impairment of assets since they are still held for sale.

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