The Divesting Firm Is Required to Recognize a Gain or Loss

question 55

True/False

The divesting firm is required to recognize a gain or loss for financial reporting purposes equal to the difference between the book value of the consideration received for the divested operation and its fair value.

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Definitions:

Neopentyl Bromide

A primary alkyl halide with the formula CH3C(Br)(CH3)3, known for its resistance to nucleophilic substitution reactions.

Cyclohexanone

A six-membered cyclic ketone, important as an intermediate in the synthesis of nylon and other polymers.

α-Halogenation

A chemical process where a hydrogen atom in an organic molecule is replaced by a halogen atom through substitution.

Acid

An acid is a substance that can donate a hydrogen ion (H+) to another substance and is typically characterized by a sour taste and the ability to turn blue litmus red.