User Account

All Pages

What before-tax amount should Mercedes report

Assignment Help Accounting Basics
Reference no: EM132502846

Question - On October 28, 2018, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2018, the end of the company's fiscal year. The division's loss from operations for 2018 was $1,850,000.

The division's book value and fair value less cost to sell on December 31 were $3,120,000 and $2,340,000, respectively. What before-tax amount(s) should Mercedes report as loss on discontinued operations in its 2018 income statement?

a. $1,850,000 loss.

b. $2,630,000 loss.

c. No loss would be reported.

d. $780,000 impairment loss included in continuing operations and a $1,850,000 loss from discontinued operations.

Reference no: EM132502846

Questions Cloud

What saving to company of locating inside foreign trade zone : About 14% of the materials are defective and disposed of as waste. What is the savings to the company of locating inside a foreign trade zone?
Calculate the probabilities : Assume that X is a hyper-geometric random variable with N = 17, S = 6, and n = 7. Calculate the following probabilities. (Round your answers)
What are the breakeven sales in unit : If the selling price per unit is $10, the unit contribution margin is $5, and total fixed expenses are $15,000, what are the breakeven sales in units?
Why are patience and discipline important in work : Why are patience and discipline important in work at the business field?
What before-tax amount should Mercedes report : What before-tax amount(s) should Mercedes report as loss on discontinued operations in its 2018 income statement
Why does monetary policy become ineffective : Why does monetary policy become ineffective when an unusually big negative demand shock hits the economy?
Why does mercantilism want to increase trade surplus : Why does mercantilism want to increase trade surplus by importing raw materials and exporting finished products? Comment about this policy
What is raising the market equilibrium value : What is Raising the market equilibrium value of the exchange rate
How many dozens of ears of corn must corny and sweet sell : $3.75, variable costs are $1.25 per dozen, and total fixed costs are $750.00. How many dozens of ears of corn must Corny and Sweet sell to breakeven?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd