Katherine's Fashions Is Going to Discontinue One of Its Manufacturing

question 87

Multiple Choice

Katherine's Fashions is going to discontinue one of its manufacturing divisions.The division's assets with a book value of $1,000,000 are sold for $750,000.The division generated an operating loss of $145,000 after the decision was made to discontinue the segment.Ignoring income taxes,what total amount should be reported on the income statement as discontinued operations?

• A)$105,000 loss
• B)$250,000 loss
• C)$395,000 loss
• D)$145,000 gain

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Definitions:

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