During 2007, Gomez Corporation Disposed of Pine Division, a Major $\text { Total Amount to be Included in }$

question 84

Short Answer

During 2007, Gomez Corporation disposed of Pine Division, a major component of its business.Gomez realized a gain of $1,200,000, net of taxes, on the sale of Pine's assets.Pine's operating losses, net of taxes, were $1,400,000 in 2007.How should these facts be reported in Gomez's income statement for 2007? $\text { Total Amount to be Included in }$
$\begin{array}{cc} &\text {Income from }& \text {Results of }\\&\text { Continuing Operations } & \text { Discontinued Operations } \\\hline a.& \$ 1,400,000 \text { loss } & \$ 1,200,000 \text { gain } \\b.&200,000 \text { loss } & 0 \\c.&0 & 200,000 \text { loss } \\d.&1,200,000 \text { qain } & 1,400,000 \text { loss }\end{array}$

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Definitions:

Death

The cessation of all biological functions that sustain a living organism, marking the end of life.

Milligram

A unit of mass equal to one thousandth of a gram, used in measurements of small quantities.

Combining Form

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A letter or group of letters added at the end of a word to form a new word, often to indicate a type of word like a noun or adjective.