Hensel B.

Sevilla INTERMEDIATE ACCOUNTING 3

BSMA UNIT 3: Topic 1

Noncurrent Asset Held for Sale and Discontinued Operation

PRETEST
1. A 6. D
2. D 7. A
3. B 8. D
4. D 9. A
5. C 10. D

ASSESSMENT

1. C 11. B 21. D 31. B

Solution:
20x2: (1,600,000-2,600,000) x 70% =
(700,000)
20x1: -2,800,000 x 70% = (1,960,000)
2. A 12. C 32. A
22. D
Solution:
Operating profit Jan1-Apr 30 20x1 400,000
Operating loss- May 1-Dec31,20x1 (200,000)
Impairment loss(32m-26m) (6,000,000)
Severance pay (220,000)
Employee relocation cost (100,000)
Total (6,120,000)
Multiply by: 1 minus tax rate .70
Loss for the period from (4,284,000)
discounted operations
3. D 13. B 23. C 33. C
4. B 14. C 24. A 34. C
5. C 15. B 25. D 35. D
6. B 16. A 26. C 36. C
Solution:
59.6M – 64M = 4.4M
– Impairment loss
52M – 59.6M = 7.6M
Add. Impairment loss
7. A 17. A 27. D 37. D
8. A 18. B 28. B 38. A
Solution:
22.8M – 940,206
(impairment loss) =
21, 859, 794
9. A 19. C 29. B 39. A
Solution:
16M – 659, 794
(impairment loss) =
15,340,206
10. A 20. D 30. B 40. B