In 2002, Laetner Industries decided to discontinue its Laminating Division, an identifiable segment of Laetners business. The measurement date for the discontinuance is August 1. At December 31, Laetner s year-end, the division has not been sold. However, negotiations for the sale are progressing in a positive manner, Analysis of the records for the year disclosed the following relative to the Laminating Division.

Instructions:
1. Assuming a 35% tax rate, what will be the 2002 reported gain or loss from operating the discontinued division?
2. What will be the 2002 reported gain or loss from disposal of the division?
3. Prepare the discontinued operations section of Laetner Industries" income statement for the year ending December 31. 2002.

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Loss for period, January 1 to August 1, 2002. Loss for period, August 1 to December 31, 2002 Expected loss in 2003 preceding disposal. Expected gain on disposal of division....... $38,600 51,300 25,000 20,000