On November 30 2016 Fleiner Company announced its plans to
On November 30, 2016, Fleiner Company announced its plans to discontinue the operations of Division P (a major component of the company) by selling the division. On December 31, 2016, Division P had not yet been sold and was classified as held for sale. On this date, Division P had assets with a book value of $920,000 and liabilities with a book value of $610,000. Fleiner estimates that the fair value of Division P on this date is $190,000. During 2016, Division P earned revenues of $920,000 and incurred expenses of $980,000. Fleiner is subject to a 30% income tax rate.
Prepare the results from discontinued operations section of Fleiner’s income statement for 2016. Show supporting calculations.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help