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Discountinue Operation
Discountinue Operation
Discountinue Operation
8)
Income/Loss from operations (Jan 1 - Apr 30):
Revenue: 1,500,000
Expenses: 2,000,000
Loss from operations: 500,000
Impairment Loss:
Carrying amount: 2,000,000
Fair value less cost to sell: 1,800,000
Impairment Loss: 200,000
Tax Benefit
Tax rate: 30%
Tax benefit on loss: 1,000,000 * 30% = 300,000