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INSTRUCTIONS
1. Choose the best answer
2. Encircle the answer with a permanent ink pen
3. Erasure would invalidate your answer
4. No solution no credit
2. What amount should be included as loss on disposal in the statement of comprehensive income for the year
ended December 31, 2017?
a. 550,000 c. 150,000
b. 700,000 d. 0
3. On September 30, 2017, when the carrying amount of the net assets of a business segment was 70,000,000.
Young Company signed legally binding contract to sell the business segment.
The sale is expected to be completed by January 31, 2018 at a sale price of 60,000,000.
In addition, prior to January 31, 2018, the sale contract obliged Young Company to terminate the employment of
certain employees of the business segment incurring an expected termination cost of 2,000,00 to be paid on June
30, 2018.
The segment revenue and expenses for 2017 were 40,000,000 and 45,000,000 respectively.
Before income tax, what amount should be reported as loss from discontinued operation for 2017?
a. 17,000,000 c. 15,000,000
b. 12,000,000 d. 7,000,000
4. On January 1, 2013, Roma Company purchased equipment for 4,000,000. The equipment has a useful life of
10 years and a residual value of 400,000.
On January 1, 2017, the entity determined that the useful life of the equipment was 12 years from the date of
acquisition and the residual value was 460,000.
What is the depreciation of the equipment for 2017
a. 175,000 c. 360,000
b. 262,500 d. 300,000
5. Bonus