Question: Refer to the situation described in BE 4-8. Assume instead that the estimated fair value of the segment's assets, less costs to sell, on December

Refer to the situation described in BE 4-8. Assume instead that the estimated fair value of the segment's assets, less costs to sell, on December 31 was $7 million rather than $10 million. Prepare the lower portion of the 2018 income statement beginning with pretax income from continuing operations. Ignore EPS disclosures.

In BE 4-8.

On December 31, 2018, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $10 million. The business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations of the segment during 2018 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8 million. The income tax rate is 30%. Prepare the lower portion of the 2018 income statement beginning with pretax income from continuing operations. Ignore EPS disclosures.

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