Reference no: EM133150652
Question - In 2021, Masuorto Company decided to discontinue the Splicing Division. On December 31, 2021, the division has not been completely sold. However, it is probable that the disposal will be completed within a year.
Analysis of the records for the year disclosed the following information relative to the Splicing division:
Loss on disposal of some assets during 2021 500,000
Expected operating loss in 2022 proceeding final disposal 1,000,000
Expected gain in 2022 on disposal of division 2,000,000
Operating loss for 2021 5,000,000
Required - What amount should be reported as pretax loss from discontinued operations in 2021?
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