During 2020, Honeydew Corp Disposed of Blackberry Division, a Major $\quad$

question 39

Short Answer

During 2020, Honeydew Corp disposed of Blackberry Division, a major segment of its business. Honeydew realized a gain of $1,500,000, net of taxes, on the sale of Blackberry's assets. During 2020, Blackberry's operating losses, net of taxes, were $1,800,000. How should these facts be reported in Honeydew's income statement for 2020?
a) $\quad$ $\quad$ Total Amount to be included in
$\begin{array}{llcc} \text { Income from } & \text {Results of} \\\underline{ \text {Continuing operations} } &\underline{ \text { Discontinued Operations}}\\ \text { \$ 1,800,000 loss } & \text { \$ 1,800,000 gain}\\\end{array}$

b) $\begin{array}{llcc} \text { 300,000 loss}&0\end{array}$

c) $\begin{array}{llcc}0&300,000 \text { loss }\end{array}$

d) $1,500,000 \text { gain } \quad 1,800,000 \text { loss }$

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Definitions:

Vascular Disease

A class of diseases of the blood vessels, often leading to a reduced flow of blood to organs and tissues.

Fungal Infection

An infection caused by fungi, ranging from superficial skin conditions to more serious systemic infections.

Ringworm

A fungal infection of the skin, characterized by ring-shaped, red, itchy patches.

Scaly

Characterized by or covered with scales.