How much shall be presented as discontinued operations

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Reference no: EM132785619

Segment B met the criteria to be classified as "held for sale". The board of directors was able to dispose this segment (B) on September 1, 2021. Net proceeds from the sale were P20,000,000; while the segments' carrying amount on September 1, 2021 was P18,000,000. The following pertains to the results of the operations of Segment A & B during 2021:

                                                   Segment A                            Segment B
                                  January 1- December 31, 2021 January 1- December 31, 2021
Revenue    25,000,000 2,000,000
Selling and general expenses         15,000,000                          15,000,000
Income tax 35%

Problem 1: How much shall be presented as Discontinued operations on the face of the income statement?

Problem 2: How much shall be presented as profit/loss on the face of the income statement?

Reference no: EM132785619

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