What amount should maxx report as loss


On December 31 of the current year, the Board of Directors of Maxx Manufacturing Inc. committed to a plan to discontinue the operations of its Alpha division in the following year. Maxx estimated that Alpha's following year operating loss would be $500,000 and that Alpha's facilities would be sold for $300,000 less than their carrying amounts. Alpha's current year operating loss was $1,400,000, before any consideration of impairment loss. Maxx's effective tax rate is 30%. These estimates were accurate.

In its current year income statement, what amount should Maxx report as loss from discontinued operations?

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Accounting Basics: What amount should maxx report as loss
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