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In the question it says ” Milligon Co recognized a loss of $30,000 on initial classification of the assets of the discontinued operation as held for sale, followed by a subsequent gain of $120,000 on their disposal in 20X1. These have been netted against administrative expenses.”
I did the SOFL part correctly including the loss from discontinued operations. However, when I came on doing the note related to that loss, I stumbled into a mistake which I could figure it out. As per the lecture, I added the gain of $120,000 to the admin. Expense and showed the gain separately. But when I checked the answer it showed an addition of $90,000 and not $120,000.
Is this question in the class notes or do I find it elsewhere? Let me know and I’ll spend time answering it for you.
This question came in the BPP workbook; Chapter 17, Activity 3.