During July 2012 Ralston Company decides to dispose of one of its subsidiaries which qualifies for accounting as a discontinued operation. At the July 2012 measurement date Ralston Company estimates that it will report net income of $200,000 dollars from the measurement date until the disposal date which is expected to be in April 2013. In addition, Ralston estimates that it will lose $300,000 on the sale of the segment. How much gain or loss on discontinued operations will Ralston report in its 2012 income statement (net of income taxes)?
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Question & Answer: During July 2012 Ralston Company decides to dispose of one of its subsidiaries which…..
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|Gain or (loss) on discontinued operations = 200000-300000=||-100000|
|Loss if $100000 is to be reported on discontinued operations|