During 2017, Blossom Company disposed of Pine Division, a major component of its business. Blossom realized a gain of $2920000, net of taxes, on the sale of Pine's assets. Pine's operating losses, net of taxes, were $3580000 in 2017. How should these facts be reported in Blossom's income statement for 2017? Total Amount to be Included in Income from Results of Continuing Operations Discontinued Operations $3580000 loss $2920000 gain 2920000 gain 3580000 loss 0 660000 loss 660000 loss 0

Question

Business

Theresa Meza

26 June, 17:50

During 2017, Blossom Company disposed of Pine Division, a major component of its business. Blossom realized a gain of $2920000, net of taxes, on the sale of Pine's assets. Pine's operating losses, net of taxes, were $3580000 in 2017. How should these facts be reported in Blossom's income statement for 2017? Total Amount to be Included in Income from Results of Continuing Operations Discontinued Operations $3580000 loss $2920000 gain 2920000 gain 3580000 loss 0 660000 loss 660000 loss 0

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Answers (1)

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Damon Winters · Answer 1

0 660000 loss

Explanation:

Data given in the question

Realized gain = $2,920,000

Operating losses, net of taxes = $3,580,000

By considering the above information, since there is no income arise from continuing operations so it should be zero

And, the discontinued operations, the operating losses is

= Operating losses - realized gain

= $3,580,000 - $2,920,000

= $660,000