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NEW QUESTION: 1
An enterprise decided to sell a separate major line of its business. The assets were sold for US $100,000 and had a net carrying amount US $70,000. The applicable tax rate was 20%. The result of this transaction may appear on the:
A. Income statement as an extraordinary item.
B. Income statement as a single amount for a discontinued operation
C. Balance sheet as a fundamental error.
D. Income statement as a change in accounting policy
Answer: B
Explanation:
A discontinued operation DO is a component of an entity that has been disposed of or meets the criteria for classification as held for sale. It is1) a separate major line of business or geographical operating area,2) part of a single plan to dispose of such a line or area. or3) a subsidiary acquired solely for resale. A component of an entity consists of operations and cash flows that are clearly distinguishable from the rest of the entity for financial reporting as well as operationally. A single amount is disclosed on the face of the income statement equal to the sum of1) after-tax profit loss on DOs and2 after-tax gain loss on a remeasurement of noncurrent assets or disposal groups) classified as held for sale at fair value minus cost to sell orb) disposal of the assets or disposal groups that constituted the DO.

NEW QUESTION: 2
An account can only belong to one user group, that is, one user only can belong to one department.
A. False
B. True
Answer: B

NEW QUESTION: 3
FasGrow is a no growth firm and has two million shares outstanding. It is expected to earn a constant
2 0 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 10%, calculate the current price per share for the stock.
A. $200
B. $100
C. $150
Answer: B