Question

During December 2016, Smythe Company decides to sell Division F (a strategic component of the company). On December 31, 2016, the company classifies Division F as held for sale. On that date, the book values of Division F's assets and liabilities are $950,000 and $600,000, respectively. Smythe expects to sell Division F in 2017 and estimates that the fair value of Division F is $250,000. During 2016, Division F earned revenues of $1,000,000 and incurred expenses of $1,300,000. Smythe is subject to a 30% income tax rate.
Required:
Prepare the results from discontinued operations section of Smythe's income statement for 2016. Show supporting calculations.


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  • CreatedOctober 05, 2015
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