Atanak Inc

question 50

Essay

Atanak Inc., decided to dispose of its auto parts segment on March 1, Year 1 for $200,000 (book value of net assets, $150,000). The disposal date is June 1, Year 2. Income of the segment for the first two months of Year 1 was $33,000; but for the remainder of Year 1 was a loss of $107,000. Estimated income for Year 2 to the disposal date is $64,000.
Required: Ignoring taxes, calculate the income or loss from discontinued operations and any gain or loss from the disposal of discontinued operations on the income statement of Atanak, for the year ended December 31, Year 1.

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Definitions:

Apology

An expression of regret or sorrow for having wronged someone, usually accompanied by an attempt to make amends for the actions.

Claim Message

A communication, often in written form, asserting a right or demand for resolution, typically in business or legal contexts.

Banquet

A large, formal meal for many people, often followed by speeches or entertainment.

Autocratic Tone

A communication style characterized by authoritative, dictatorial, and controlling language.