Reference no: EM132560317
Question 1: During 2020, Fun Inc.(FI) decided to dispose of Sad Division (SD), considered a separate reportable segment. The only asset SD owns is the building. The fair market value of the building is estimated to be $150,000. Assume no selling costs will be incurred. The building is estimated to have remaining useful life of 10 years; the original cost was $300,000; and it was 40% depreciated. SD's operating income from January 1 to April 30 was $45,000. FI's tax rate is 30%, and it follows IFRS. FI's Statement of Financial Performance for the year ended December 31, 2020 should report
Select one:
Option a. the $31,500 operating income and the $21,000 loss in the discontinued operations section of the income statement
Option b. the $31,500 operating income in the body of the income statement and the $21,000 loss in the discontinued operations section of the income statement.
Option c. the $45,000 operating income and the $30,000 loss in the discontinued operations section of the income statement.
Option d. the $45,000 operating income in the body of the income statement and the $30,000 loss in the discontinued operations section of the income statement