M
Mr. Dan
Guest
For year ended 12/31/08, X had rev of 900,000 and exp of 750,000, including rev and exp from both of its business segments.
On 7/1, X sold division B. For the period 1/1 to 7/1, segment B had rev of 225,000 and exp of 250,000. What amt of income should X report from continuing operations?
My work:
The way I tried figuring it out was 225,000-250,000 = a 25,000 loss from segment B. So 150,000 - 25,000 = 125,000 which would be the amt of income. But the CORRECT answer is 175,000. Why add 25,000?
On 7/1, X sold division B. For the period 1/1 to 7/1, segment B had rev of 225,000 and exp of 250,000. What amt of income should X report from continuing operations?
My work:
The way I tried figuring it out was 225,000-250,000 = a 25,000 loss from segment B. So 150,000 - 25,000 = 125,000 which would be the amt of income. But the CORRECT answer is 175,000. Why add 25,000?