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:

Raleigh

The capital city of North Carolina, named after the English explorer Sir Walter Raleigh.

Indians

Refers to the indigenous peoples of the Americas, often used in a historical context to describe the native populations encountered by European explorers and colonizers.

Europeans

People from the continent of Europe or of European descent.

Furs

Textiles made from the pelts of animals, historically significant in trade and fashion, but have become controversial due to ethical concerns regarding animal rights.