The following information is available about Fred Inc's discontinued operations: $$\begin{array} { | l | r | }
\hline \text { Profit attributable to discontinued operations (before taxes) } & \$ 1,700,000 \
\hline \text { Net loss on disposal } & 200,000 \
\hline \text { Income taxes attributable to discontinued operations } & 100,000 \
\hline
\end{array}$$ What single amount will be presented on Fred's statement of comprehensive income?
A)$1,400,000
B)$1,500,000
C)$1,600,000
D)$1,700,000

Question

The following information is available about Fred Inc's discontinued operations: $$\begin{array} { | l | r | } 
\hline \text { Profit attributable to discontinued operations (before taxes) } & \$ 1,700,000 \
\hline \text { Net loss on disposal } & 200,000 \
\hline \text { Income taxes attributable to discontinued operations } & 100,000 \
\hline
\end{array}$$ What single amount will be presented on Fred's statement of comprehensive income?
A)$1,400,000
B)$1,500,000
C)$1,600,000
D)$1,700,000

Quizplus · Accepted Answer

The single amount presented on the statement of comprehensive income for discontinued operations is calculated by taking the profit before taxes ($1,700,000), subtracting both the net loss on disposal ($200,000) and the income taxes ($100,000). This results in $1,700,000 - $200,000 - $100,000 = $1,400,000.

The Following Information Is Available About Fred Inc's Discontinued Operations