LTB Enterprises consists of four separate divisions: building products, chemicals, mining, and plastics. On march 15, 2012, LTB sold the chemical division for $ 625,000 cash. Financial information related to the chemical division follows:

(a) Provide the journal entry (or entries) to record the sale of the chemical division. Assume an income tax rate of 35 percent.(b) Prepare the section of LTB's 2012 income statement that relates to the disposal of the business segment.

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(1/1-3/15/12) (3/15/12) Assets Sales S175,000 S1.850,000 1.400,000 Operating expenses Net operating income (loss) 160,000 Liabilities S 15,000