Reference no: EM132767114

On April 1, 2020 AC Corp. approved to dispose of a component of its operations. The disposal meets the criteria for classification as discontinued operation. From January 1 to April 30, 2020, the component earning operating profit of P 100,000 and from May to December 31, 2020, the segment suffered operating losses of P 50,000. The net assets of the component has a carrying amount of P 8,000,000 as of April 30, 2020. The fair value less cost to sell of the component is P 6,500,000. Additional estimated disposal loss includes separation pay of employees of P 55,000 and employee relocation costs of P 25,000, both of which are directly associated with the decision to dispose the segment.

Problem 1: How much is the loss from discontinued operations that is to be reported by ABC Corp. in the statement of comprehensive income for the year ended December 31, 2020?