Choice "A" is correct. In its 20X4 income statement, Host would include in its loss from discontinued operations the 20X4 losses but not the projected 20X5 operating losses and not the projected gain on disposal. The 20X4 losses are $500,000 in total. The projected 20X5 operating loss of $400,000 and the projected gain on disposal would be included in its 20X5 income statement.
Choice "d" is incorrect. It includes only a portion of the 20X4 operating losses in the 20X4 loss from discontinued operations. Each amount should be reported in the period it occurred, and the entire 20X4 operating loss, not just the portion that occurred after the decision date, would be included.
Choice "c" is incorrect. It includes all of the projected operating losses and the projected gain in the 20X4 loss from discontinued operations. Each amount should be reported in the period it occurred.
Choice "b" is incorrect. It includes all of the projected operating losses in the 20X4 loss from discontinued operations. Each amount should be reported in the period it occurred.