Hi, can some please help me with this question I have been working on it all day but my answer seems to be wrong:
Assume that Shengru Inc. decides to sell CBTV, its television subsidiary, on September 30, 2007. There is a formal plan to dispose of the subsidiary and the sale qualifies for discontinued operations treatment. Pertinent data on the operations of the TV subsidiary are as follows:
loss from operations from beginning of year to September 30, $1,300,000 (net of tax)
loss from operations from September 30 to end of 2007, $700,000 (net of tax)
estimated loss on sale of net assets on disposal date June 1, 2008, $150,000 (net of tax)
The year end is December 31.
What is the net income/loss from discontinued operations reported in 2007? In 2008?
Net income/loss (2007): $
Net income/loss (2008): $
Prepare the discontinued operations section of the income statement for the year ended 2007.
Discontinued operations (2007):
If the amount reported in 2008 as a gain or loss from disposal of the subsidiary by Shengru Inc. becomes materially incorrect, when and how is the correction reported, if at all?
2007-09-21
16:53:28
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1 answers
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Anonymous
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Other - Business & Finance