The Division's Book Value and Fair Value Less Cost to Sell

question 7

Multiple Choice

The division's book value and fair value less cost to sell on December 31 were $3,000,000 and $3,500,000, respectively. What before-tax amount(s) should Mercedes report as loss on discontinued operations in its 2013 income statement?

• A)$2,000,000 loss.
• B)$2,500,000 loss.
• C)None.
• D)$500,000 gain included in continuing operations and a $2,000,000 loss from discontinued operations.

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Definitions:

Niacin

Also known as Vitamin B3, it is essential for converting food into energy, maintaining skin health, and supporting the nervous and digestive systems.

Pellagra

A vitamin deficiency disease most commonly caused by a lack of niacin (vitamin B3) in the diet, leading to dermatitis, diarrhea, dementia, and even death if untreated.

Vitamins

Essential nutrients that the body needs in small amounts to function and maintain health.

ATP

Adenosine triphosphate, an energy-carrying molecule found in the cells of all living things which fuels cellular processes.