Scenario 3: Assume That Jacob Had Not Yet Sold the Office

question 27

Essay

Scenario 3: Assume that Jacob had not yet sold the office furniture division by the end of 2009. Further, assume that the fair value less costs to sell of the division's assets at 12/31/09 was $12 million and was expected to remain the same when the assets are sold in 2010. The book value of the division's assets was $19 million at the end of the year. Under these assumptions, what would Jacob report in its 2009 income statement regarding the office equipment division? Explain where this information would be presented.

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Definitions:

Health Problems

Issues or conditions that negatively impact an individual's physical, mental, or emotional well-being.

Seligman

A psychologist known for his work on positive psychology, learned helplessness, and well-being.

Optimistic

Having a positive outlook or expectation about the future, believing that good things will happen.

Explanatory Style

A psychological attribute that indicates how people explain to themselves why they experience a particular event, either positive or negative.