Exercise 4-8 Discontinued operations; disposal in subsequent year; solving for unknown LO4 On September 17, 2009, Ziltech, Inc. entered into an agreement to sell one of its divisions that qualifies as a component of the entity according to SFAS No. 144. By December 31, 2009, the companys fiscal year-end, the division had not yet been sold, but was being held for sale. The net fair value (fair value minus costs to sell) of the divisions assets at the end of the year was $11 million. The pretax operating income of the division during 2009 was $4 million. Pretax income from continuing operations for the year totaled $14 million. The income tax rate is 40%. Ziltech reported net income for the year of $7.2 million. Required: Determine the book value of the divisions assets on December 31, 2009. Amounts in parentheses do not require a minus sign. Pretax income from continuing operations $ Income tax expense ( ) Income from continuing operations Less: Net income Loss from discontinued operations net of tax $ Pretax income of division $ Add: Loss from discontinued operations before tax Impairment loss $ Fair value of divisions assets $ Plus impairment loss Book value of divisions assets $