Ace Corporation decided to sell its medical supplies business segment for $500,000, on September 1, Year...

 

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Ace Corporation decided to sell its medical supplies business segment for $500,000, on September 1, Year 1. The disposal date is November 1, Year 1. The book value of the segment's net assets is $650,000. The pre-tax income for the segment for the period January 1 - September 1, Year 1, was a loss of $90,000; the pre-tax income for the segment for September and October was a loss of $20,000. Assuming a tax rate of 40%, choose the correct reporting for discontinued operations in the income statement of Ace Corporation, for the year ended December 31, Year 1. Income (loss) from Discontinued Gain (loss) from disposal of discontinued 1 operations ($90,000) 2 $0 3 ($66,000) 4 ($54,000) operations ($170,000) ($144,000) ($90,000) ($102,000) Ace Corporation decided to sell its medical supplies business segment for $500,000, on September 1, Year 1. The disposal date is November 1, Year 1. The book value of the segment's net assets is $650,000. The pre-tax income for the segment for the period January 1 - September 1, Year 1, was a loss of $90,000; the pre-tax income for the segment for September and October was a loss of $20,000. Assuming a tax rate of 40%, choose the correct reporting for discontinued operations in the income statement of Ace Corporation, for the year ended December 31, Year 1. Income (loss) from Discontinued Gain (loss) from disposal of discontinued 1 operations ($90,000) 2 $0 3 ($66,000) 4 ($54,000) operations ($170,000) ($144,000) ($90,000) ($102,000)