Question: In 2010 Earthscope Company decided to sell its satellite sales
In 2010, Earthscope Company decided to sell its satellite sales division, even though the division had been profitable during the year. During 2010, the satellite division earned $ 54,000 and the taxes on that income were $ 12,500. The division was sold for a gain of $ 750,000, and the taxes on the gain amounted to $ 36,700. How would these amounts be reported on the income statement for the year ended December 31, 2010?
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