Cutch & Company has had operating divisions A and B since it began. On August 7,...

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Cutch & Company has had operating divisions A and B since it began. On August 7, 2016, the decision was made to discontinue Division B. It was phased out over the next several months, and its assets were finally sold on February 14, 2017. For the fiscal year ended December 31, 2016, Division B had an operating income of $180,000. The book value of the assets at year end was $600,000; their fair market value was $500,000. The applicable income tax rate is 30%. Prepare the Discontinued Operations section of Cutch's income statement for the year ended December 31, 2016, along with supporting calculations. Cutch & Company has had operating divisions A and B since it began. On August 7, 2016, the decision was made to discontinue Division B. It was phased out over the next several months, and its assets were finally sold on February 14, 2017. For the fiscal year ended December 31, 2016, Division B had an operating income of $180,000. The book value of the assets at year end was $600,000; their fair market value was $500,000. The applicable income tax rate is 30%. Prepare the Discontinued Operations section of Cutch's income statement for the year ended December 31, 2016, along with supporting calculations.

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