On December 31, 20X0, Greer Co. entered into an agreement to sell its Hart segment's assets. On that date, Greer estimated the gain from the disposition of the assets in 20X1 would be $700,000 and Hart's 20X1 operating losses would be $200,000. Hart's actual operating losses were $300,000 in both 20X0 and 20X1, and the actual gain on disposition of Hart's assets in 20X1 was $650,000. Disregarding income taxes, what net gain (loss) should be reported for discontinued operations in Greer's comparative 20X1 and 20X0 income statements?
a. 20X1: $350,000; 20X0: $(300,000)
b. 20X1: $(150,000); 20X0: $200,000
c. 20X1: $50,000; 20X0: $(300,000)
d. 20X1: $0; 20X0: $50,000
2. When a company has decided to discontinue operations of a component unit, the loss on disposal should
a. Exclude operating losses during the period.
b. Include operating losses of the current period.
c. Be an operating item.
d. Be an extraordinary item.
3. Which of the following items is not subject to the application of intra-period income tax allocation?
a. Income from continuing operations.
b. Operating income.
c. Discontinued operations.
d. Components of other comprehensive income.