On December 31, the end of the current fiscal year, a company completed the sale of...

 

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On December 31, the end of the current fiscal year, a company completed the sale of one business segment for $11.8 million. The business segment qualifies as a component of the entity, according to GAAP. Consider the following additional information: The book value of the assets of the segment was $8.4 million at the time of the sale. The income from operations of the segment during the current year was $5.4 million. • Pretax income from other continuing operations for the year totaled $13.4 million. • The income tax rate is 25%. Prepare the lower portion of the current year income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4. On December 31, the end of the current fiscal year, a company completed the sale of one business segment for $11.8 million. The business segment qualifies as a component of the entity, according to GAAP. Consider the following additional information: The book value of the assets of the segment was $8.4 million at the time of the sale. The income from operations of the segment during the current year was $5.4 million. • Pretax income from other continuing operations for the year totaled $13.4 million. • The income tax rate is 25%. Prepare the lower portion of the current year income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.

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