Question

on august 1 2018 rocket retailers adopted a plan to discontinue in its income statement rocket would report a before-tax oss on discontinued operations of

Answer 1

Answer: $143,000

Step-by-step explanation:

Before-tax loss on Discontinued Operations for the year ended January 31, 2019;

= Operating loss + Impairment of division assets

= $128,000 + $15,000

= $143,000

This loss will be recorded in the Income statement of Rocket Retailers separately from Continuing Operations and as it is a loss, it will most probably incur a future tax benefit. It will however reflect in the overall income of Rocket Retailers.