In 2011, Laetner Industries decided to discontinue its Laminating Division, a separately identifiable component of Laetner’s business. At December 31, Laetner’s year-end, the division has not been completely sold. However, negotiations for the final and complete sale are progressing in a positive manner, and it is probable that the disposal will be completed within a year. Analysis of the records for the year disclosed the following relative to the Laminating Division.
Operating loss for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $89,900
Loss on disposal of some Laminating Division assets during 2011 . . . . . . . . . . . . 5,000
Expected operating loss in 2012 preceding final disposal . . . . . . . . . . . . . . . . . . . 45,000
Expected gain in 2012 on disposal of division . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000

Instructions:
Assuming a 35% tax rate, prepare the Discontinued Operations section of Laetner Industries’ income statement for the year ending December 31, 2011.