Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on august 1, 2018, juarez corporation adopted a pl

On August 1, 2018, Juarez Corporation adopted a plan to discontinue its catalog sales division,...

90.2K

Verified Solution

Question

Accounting

On August 1, 2018, Juarez Corporation adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2019. On January 31, 2019, Juarez's fiscal year-end, the following information relative to the discontinued division was provided:

Operating loss Feb. 1, 2018 to Jan. 31, 2019 $400,000

Estimated operating losses, Feb. 1 to June 30, 2019 100,000

Excess of book value over fair value less cost to sell of assets

at Jan. 31, 2019 60,000

Juarez's income tax rate is 35%. In its income statement for the year ended January 31, 2019, Juarez would report income (loss) on discontinued operations of:

A. $299,000.

B. $(221,000).

C. $221,000.

D. $(621,000).

E. $(299,000).

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Differential Equations. A 10kg weight is attached to a wall horizontally via a spring. The rest...

Advance Math
Q

Depreciation for Partial Periods Bar Delivery Company purchased a new delivery truck for $36,000 on April 1,...

Accounting
Q

If the potential difference across a pair of batteries used to power a flashlight is...

Physics
Q

vi On the flat surface of a disc of radius a a small circular hole...

Physics
Q

9 Pam is comparing the prices of two different brands of peanut butter Each brand...

Basic Math
Q

In IEEE Single precision, find the next largest machine number (successor(x)) for the binary number...

Algebra
Q

need help with 4 & 5 Gitano Products operates a job-order...

Accounting
Q

ASAP!!!! thank you Assume that Holmes issued 40,000 shares of common...

Accounting
Q

Oak Mart, a producer of solid oak tables, reports the following data from its second...

Accounting
Q

_ewis Company reports the following fixed budget and actual results for May. Prepare a flexible...

Accounting
Q

Chalmers Corporation operates in multiple areas of the globe, and relatively large price changes are...

Accounting
Q

McKerley Corporation has preferred stock outstanding that will pay an annual dividend of $5.65 per...

Finance