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NEW QUESTION: 1
On December 31, 20X2, the Board of Directors of Maxy Manufacturing, Inc. committed to a plan to
discontinue the operations of its Alpha division. Maxy estimated that Alpha's 20X3 operating loss would
be $500,000 and that the fair value of Alpha's facilities was $300,000 less than their carrying amounts.
Alpha's 20X2 operating loss was $1,400,000, and the division was actually sold for $400,000 less than its
carrying amount in 20X3. Maxy's effective tax rate is 30%.
In its 20X2 income statement, what amount should Maxy report as loss from discontinued operations?
A. $1,400,000
B. $980,000
C. $1,190,000
D. $1,700,000
Answer: C
Explanation:
Choice "b" is correct. Since the fair value of Alpha's facilities was $300,000 less than its carrying value,
there has been an impairment loss, and that loss should be recognized in 20X2. That $300,000
impairment loss plus the $1,400,000 20X2 operating loss would be recognized in 20X2 net of tax. The
total loss would be $1,700,000 * 70% (100% - 30%) or $1,190,000. Choice "a" is incorrect. It includes the
2 0X2 operating loss of $1,400,000 but not the $300,000 impairment loss but does report the 20X2
operating loss net of tax. Choice "c" is incorrect. It includes the 20X2 operating loss of $1,400,000, but not
the $300,000 impairment loss, and reports the 20X2 operating loss gross of tax and not net of tax. Choice
"d" is incorrect. It reports the 20X2 loss from discontinued operations gross of tax and not net of tax.
NEW QUESTION: 2
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A. increasing the flashback retention period
B. increasing the retention period for SQL Management Base
C. increasing the Automatic Workload Repository (AWR) retention period
D. increasing the undo retention period for the database instance
Answer: C
NEW QUESTION: 3
Huawei's USG6000 series next-generation firewalls are able to achieve full IPS and AV features throughput, which is lower than when only firewall features are enabled?
A. Decrease to 20%
B. The decline does not exceed 50%
C. Decrease to 30%
D. No change
Answer: B
NEW QUESTION: 4
Which statement about OSPF multiaccess segments is true?
A. The designated router is elected first.
B. The router that sent the first hello message is elected first.
C. The backup designated router is elected first.
D. The designated and backup designated routers are elected at the same time.
Answer: C
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