LTB Enterprises consists of four separate divisions: building products, chemicals, mining, and plastics. On March 15, 2018, LTB sold the chemicals division for $625,000 cash. Financial information related to the chemicals division follows:

a. Provide the journal entry (or entries) to record the sale of the chemicals division. Assume an income tax rate of 35 percent.
b. Prepare the section of LTB€™s 2018 income statement that relates to the disposal of the business segment.

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(3/15/18) Assets (1/1-3/15/18) Sales $175,000 $1,850,000 Operating expenses Net operating income (loss) 160,000 Liabilities 1,400,000 $ 15,000