On November 1, 2018, Jamison Inc. adopted a plan to discontinue its barge 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 April 30, 2019. On December 31, 2018, the company's year-end, the following information relative to the discontinued division was accumulated:

Operating loss Jan. 1–Dec. 31, 2018 $ 68 million
Estimated operating losses, Jan. 1 to April 30, 2019 92 million
Excess of fair value, less costs to sell, over book value at Dec. 31, 2018 12 million

In its income statement for the year ended December 31, 2018, Jamison would report a before-tax loss on discontinued operations of:

Multiple Choice

$56 million.

$148 million.

$160 million.

$68 million.

Since in this question, there is no asset impairment plus the fair value is exceeded then the book value which represents unrealized gain so based on this, only the operating loss would be recorded i.e $68 million

All other information i.e estimated operating loss and excess value which is given is not relevant. Hence, ignored it

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