Gleeson Industries Consists of Four Separate Divisions: Compressed Wood Products

question 73

Multiple Choice

Gleeson Industries consists of four separate divisions: compressed wood products, chemicals, stone products, and plastics. On March 15, 2017, Gleeson sold the chemicals division for $625,000 cash. Financial information related to the chemicals division follows:
$$\begin{array}{l}\text { Peried from } 1/1/17 \text { to } 3/15/17\\\begin{array} { | l | r | } \hline \text { Sales } & \$ 175,000 \\\hline \text { Operating expenses } & 160,000 \\\hline \text { Net aperating income (1055) } & \$ 15,000 \\\hline & \\\hline \text { As of 3/15/17 } & \\\hline \text { Assets } & \$ 1,850,000 \\\hline \text { Liabilities } & 1,400,000 \\\hline\end{array}\end{array}$$
The journal entry to record the sale of the chemicals division will include:

• A)a debit to Loss on Disposal of Segment for $175,000.
• B)a debit to Net Assets of Chemicals Division for $450,000.
• C)a debit to Unusual Gain for $175,000.
• D)a credit to Gain on Disposal of Segment for $175,000.

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Definitions:

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by problems with focus, hyperactivity, and impulsiveness.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, increases alertness, attention, and energy.

Methylphenidate

Methylphenidate is a stimulant medication commonly prescribed to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy, working by increasing attention and decreasing impulsiveness and hyperactivity.

Dopamine And Norepinephrine

Neurotransmitters involved in regulating mood, attention, reward, and arousal, playing key roles in the brain's reward and stress pathways.