- 12 View Policies Current Attempt in Progress On June 30, Novak Corp. discontinued its operations in Mexico. During the year, the operating income was $250,000 before taxes. On September 1, Novak disposed of the Mexico facility at a pretax loss of $650,000. The applicable tax rate is 25%. Show the discontinued operations section of Novak's income statement. NOVAK CORP. Partial Income Statement S $