Missoula Corporation Disposed of One of Its Segments in the Second

question 8

Multiple Choice

Missoula Corporation disposed of one of its segments in the second quarter and incurred a gain from disposal of discontinued segment of $600,000,net of taxes.What is the effect of this gain from disposal of discontinued segment?

• A)Increase net income from operations for the year by $600,000.
• B)Increase second quarter net income by $600,000.
• C)Increase each quarter's net income by $150,000.
• D)Increase each of the last three quarters' net income by $200,000.

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Definitions:

Service Businesses

A business providing services rather than products to customers.

Administrative Processes

Activities and procedures implemented within an organization to ensure efficient operation and management.

Lean Environment

A management philosophy focusing on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Raw and In Process Inventory

Items and materials that are either awaiting use in production or currently being manufactured.