Question 2

Question 2 {7' marks) {15 minutes) On March 3'], 2021, Karl General Stores, a public company, decides to discontinue one of their stores. You have the following information about the assets of the store to be closed: Original cost of assets 51,200,000 Accumulated depreciation taken up to December 311 2020 666,000 Annual depreciation 111,000 Fair value on March 31, 2021 520,000 Costs to sell the assets 4% of fair value The store to be closed generated the followmg results In 202 : Sales $830,000 Expenses {excluding depreClation on assets heldfor-sale in 2021 and 900.000 losses related to reclassication of assets as heldrlorssale) M Calculate the results from discontinued operations to be presented in Karl General Stores' income statement in 202']. The tax rate is 30%