This is the second time I am posting same question.

I understand except -15000000*(100%-30%) and (60000000-52000000)*(100%-30%),

why not -15000000*30% same with the other one (60000000-52000000)*30%???

Ortiz Publishing had several operating divisions. In June 2012, it decided to sell one of its divisions that qualified as a separate component under current US GAAP. The division was sold on December 15, 2012, for a net selling price of $60,000,000. The book value of the division at that date was $52,000,000. For the period from January 1 through disposal, the division reported a pretax operating loss of $15,000,000. Ortiz income tax rate is 30% on all items of income or loss. For the year ended December 31, 2012, Ortiz had income from continuing operations before income tax expense of $40,000,000. Ortiz has 20,000,000 common shares outstanding for the whole year.

Prepare Ortiz income statement for the year 2012, beginning with income from continuing operations.

Income from continuing operations before income tax $40,000,000

Income tax expense (___________)

Income from continuing operations $

Discontinued operations:

from discontinued operations,

net of tax of $ ($ )

on sale of division,

net of tax of $

from discontinued operations

Net Income $

Earnings per share:

Income from continuing operations $1.400

Discontinued operations (0.245)

Net income $1.155

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