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  1. business
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  3. on october 1, 2016, american medical inc. adopted

On October 1, 2016, American Medical Inc. adopted a plan to discontinue its generic drug...

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Accounting

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On October 1, 2016, American Medical Inc. adopted a plan to discontinue its generic drug division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by March 30, 2017. On December 31, 2016, the company's year-end, the following information relative to the discontinued division was accumulated: Operating loss for 2016 ($195 million Excess of book value over fair value, less costs to sell, at year-end 25 million In its income statement for the year ended December 31, 2016, American would report a before-tax loss on discontinued operations of: a. $170 million. b. $195 million. c. $220 million

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