Sierra Inc A) Choice 1
B) Choice 2
C) Choice 3
D)

question 16

Multiple Choice

Sierra Inc. committed to sell its mountaineering division for $700,000 on October 1, Year 1. The book value of the division's net assets was $800,000. The disposal date is expected to be April 1, Year 2. Year 1 income of the division to October 1, Year 1 was a $30,000 loss, and income for the remainder of the year was a $10,000 loss. Sierra estimates that the division will lose another $25,000 during the remainder of the phase-out period in Year 2. Ignoring taxes choose the correct reporting for discontinued operations in the income statement of Sierra, Inc., for the year ended December 31, Year 1. $$\begin{array} { | l | l | } \hline &\text { Income (loss) from Discontinued operations } & \text { Gain (loss) from disposal of discontinued operations } \\\hline 1& \$ 0 & ( \$ 165,000 ) \\\hline 2& ( \$ 165,000 ) & \$ 0 \\\hline 3& ( \$ 30,000 ) & \$ \$ 135,000 ) \\\hline 4 &( \$ 65,000 ) & \$ \$ 100,000 ) \\\hline\end{array}$$

• A) Choice 1
• B) Choice 2
• C) Choice 3
• D) Choice 4

Understand the significance and outcomes of key legislative acts passed by the British Parliament.

Recognize the implications of British economic policies on colonial America.

Understand the escalation of colonial resistance leading to the American Revolution.

Understand the causes and significant events leading up to the American Revolution.

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Definitions:

Output Level

The quantity of goods or services produced by a firm or economy at a given time.

Price Discriminate

The practice of selling the same product to different customers at different prices, based on what each customer is willing to pay.

Profit Earn

The income a business receives after all expenses and costs are subtracted from total revenue.

Price Discrimination

The practice of charging different prices for the same product or service to different consumers, based on their willingness to pay.