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Assume these events happened to Bakko, Inc. in Year$4.$ Bakko uses December $31$ for the annual reporting period.

At the beginning of Year$4,$ Bakko owns $12$ donut stores and $30$ gas stations. Each of the $42$ businesses is a separate business component.

Bakko sells $2$ donut stores in Year$4$ on October $1.$ The disposition is not considered to be a strategic shift.

Bakko sells $6$ gas stations in urban areas on May $1.$ The disposition is considered to be a strategic shift.

Match each of the following descriptions to where it would most likely be reported on Bakko's corporate income statement for Year$4.$ Use the following choices for your answers. You can use each choice more than once or not at all.

A$.$ Part of income from continuing operations

B$.$ As a discontinued operation

C$.$ Not part of net income for Year$4$

Prompt $11.$ Gain of $$12,000$ on sale of some equipment from one of the gas stations that Bakko still owns at $12/31/$Year$4.$

Answer for prompt $11.$ Gain of $$12,000$ on sale of some equipment from one of the gas stations that Bakko still owns at $12/31/$Year$4.$

Part of income from continuing operations

Prompt $22.$ Bakko receives $$5,000$ for a fuel contract that will begin in Year$5.$

Answer for prompt $22.$ Bakko receives $$5,000$ for a fuel contract that will begin in Year$5.$

Not part of net income for Year$4.$

Prompt $33.$ Bakko has $$100,000$ gain on the sale of the gas stations on May $1,$ Year$4.$

Answer for prompt $33.$ Bakko has $$100,000$ gain on the sale of the gas stations on May $1,$ Year$4.$

Part of income from continuing operations

Prompt $44.$ Operating results through April $30,$Year$4$ for the gas stations that were sold.

Answer for prompt $44.$ Operating results through April $30,$Year$4$ for the gas stations that were sold.

As a discontinued operation

Prompt $55.$ Bakko has a $$20,000$ loss on the sale of the donut stores on October $1.$

Answer for prompt $55.$ Bakko has a $$20,000$ loss on the sale of the donut stores on October $1.$

As a discontinued operation

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