On January 1, 2014, Apricot Ltd

question 429

Multiple Choice

On January 1, 2014, Apricot Ltd.decided to discontinue its plastics making division.The division, considered a reportable segment, was sold on June 1, 2014.Division assets with a carrying value of $650,000 were sold for $500,000.Operating income from January 1, to May 31, 2014 for the division was $50,000.Ignoring taxes, what amount should be reported on Apricot's income statement for the year ended December 31, 2014, under the caption "discontinued operations"?

• A)$200,000 gain
• B)$150,000 loss
• C)$50,000 gain
• D)$100,000 loss

Understand the basic concepts of capital budgeting techniques including NPV, IRR, and payback method.

Apply the time value of money concept in evaluating investment opportunities.

Recognize the importance of estimating cash flows accurately in project valuation.

Assess investment projects using different criteria and understand their applicability.

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