We 12e 2A gain of 30000 on the discontinuance of a division

We 12e 2.A gain of $30,000 on the discontinuance of a division (comprised of a $10.000 loss from operations and a s4o,000 gain on disposal) of 2016 net income. operations 20180720 1150159

Solution

Trayer Corporation Partial Statement of Comprehensive Income For the year ended Dec 31, 2017 Income From Continuing operations          290,000 Discontinued operations: Gain on Discontinued Division (Net of Taxes) - $30,000 - ($30,000 X 20%)            24,000 Income before extraordinary item          314,000 Extraordinary Loss (net of taxes) - $80,000 - ($80,000 X 20%)          (64,000) Net Income          250,000