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:

Whooping Cough

An infectious bacterial disease that causes uncontrollable, violent coughing which can make it hard to breathe; also known as pertussis.

Atelectasis

A condition in which the lung or a part of the lung collapses, preventing respiratory exchange of carbon dioxide and oxygen.

Lungs

The pair of respiratory organs in the chest where blood is oxygenated and carbon dioxide is removed.

Dilation

The process of expanding or widening an opening or structure in the body, often referring to blood vessels, the pupil of the eye, or the cervix during childbirth.