Question: In 2011 Office Products decided to sell its furniture division
In 2011, Office Products decided to sell its furniture division because it had been losing money for several years. During 2011, the furniture division lost $ 140,000. The tax savings related to the loss amounted to $ 25,000. The division was sold at a loss of $ 350,000, and the tax savings related to the loss on the sale was $ 50,000. How would these amounts be reported on the income statement for the year ended December 31, 2011?
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