Fried Cheese Company lists its sales and expenses below for the 2020 year. One division, the Swiss Division, continues to bring the profits down for the entire company, so the managers at Fried Cheese decide to discontinue this division.

Entire Company*	Swiss Division
Sales Revenue	$750,000	$40,000
Cost of Goods Sold	$290,000	$30,000
Machining Expenses	$170,000	$100,000
Admin Expenses	$50,000	$30,000
Book Value of Assets	$1,300,000	$65,000
Fair Market Value of Assets	$1,270,000	$50,000
Tax rate for 2018	20%

* The “Entire Company” line includes the Swiss Division figures.
Assets for the Swiss Division were sold on 11/10/20 for the fair market value.

1. What would Fried Cheese Company record for Income before Discontinued Operations ________________

(2 points)

2. What would Fried Cheese Company record for Gain/Loss from Operation of Discounted Swiss Division on the face of the Income statement for 2020? (4 points)

Gain or Loss (please circle one) $___________________

3. What would Fried Cheese Company record for Unrealized/Realized Gain/Loss from Disposal of Swiss Division on the face Income statement for 2020? (4 points)

Unrealized or Realized (please circle one)

Gain or Loss (please circle one)
$___________________

Answer rating: 100% (QA)

1 Fried Cheese Company Sales Revenue75000040000 710000 Cost of Goods Sold 29000030000 260000 Gross ... View the full answer