Reference no: EM132971990

Question - Zion Company has three segments, A, B and C, the closing division, is deemed inconsistent with the long term direction of the entity. Management has decided to dispose of segment C. On November 15, 2020, the board of directors of Zion Company voted to approve the disposal and an announcement was made. On that date, the carrying amount of the assets of Segment C was 90,000,000 and the fair value less cost to sell was 70,000,000. Segment C's revenue and expense for 2020 respectively were 50,000,000 and 32,000,000 including an interest of 5,000,000 attributable to Segment C.

There was no further impairment of assets between November 15 and December 31, 2020.

Before income tax, how much is the income or loss from the discontinued segment for 2020?

a. 13,000,000 income

b. 18,000,000 income

c. 30,000,000 income

d. 2,000,000 loss