Roco company manufactures both industrial and consumer electronics. due to a change in its strategic focus, the company decided to exit the consumer electronics business, and in 2016 sold the division to sunny corporation. the consumer electronics division qualifies as a component of the entity according to gaap. how should roco report the sale in its 2016 income statement?

C. As a discontinued operation, reported below income from continuing operations

Explanation:

First, the multiple choices for the question

a. Include in income from continuing operations as a non-operating gain or loss.

b. As an extraordinary item.

c. As a discontinued operation, reported below income from continuing operations.

d. None of the above.

According to General Accepted Accounting Principles (GAAP), the sale of a division that is qualified as component should be reported specially. Furthermore, it also requires that the operations of the component already disposed of or sold should be reported below the revenue reported under continuing operations for the year as a discontinued operation.

Since Roco's consumer electronics business qualifies as a component of the entity then it should be reported as stated by GAAP; specially reported and below income from continuing operations

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it