1 Discontinued Operations Problem: The Golf Division of All Sports Company is losing $200,000 per month. The Board of Directors decides on April 30, Year 1 to dispose of the Golf Division. The carrying value of the Golf Division on April 30, Year 1 is $4,000,000, and its fair value less costs to sell is $2,200,000. After months of negotiations, the division's net assets are sold on June 30, Year 2 for $2,000,000. In the meantime, the Golf Division has continued losing $200,000 per month. All Sports Company's income tax rate is 40%. How should the disposal of the Golf Division be reported. on All Sports Company's Year1 and Year 2 financial statements?

Discontinued Operations Problem: The Golf Dlvision of All Sports Company is losing $200,000 per month. The Board of Dlrectors decldes on April 30, Year 1 to dispose of the Golf Division. The carrying value of the Golf Division on Aprit 30, Year 1 is $4,000,000, and its fair value less costs to sell is $2,200,000. After months of negotlations, the divislon's net assets are sold on June 30, Year 2 for $2,000,000, In the meantime, the Golf Division has continued losing $200,000 per month. All Sports Company's income tax rate is 40%. How should the disposal of the Golf Division be reported on AllSports Companys Year 1 and Year 2 financlal statements