Sample CPA Exam Question
During January 2008, Doe Corp. agreed to sell the assets and product line of its Hart division. The sale was completed on January 15, 2009; on that date, Doe recognized a gain on disposal of $900,000. Hart’s operating losses were $600,000 for 2008 and $50,000 for the period January 1 through January 15, 2009.The income tax rate is 40%.What amount of net gain (loss) from discontinued operations should be reported in Doe’s comparative 2009 and 2008 income statements?
|
|
2009 |
2008 |
|
a. |
$ 0 |
$ 150,000 |
|
b. |
150,000 |
0 |
|
c. |
510,000 |
(360,000) |
|
d. |
540,000 |
(390,000) |