4) Discontinued Operations Exam 1 review Page 3 Surf City Company has one division (the Yellow Surfboard Division) that doesn't seem to want to hold its own. The following relates to Surf City's 2016 financial statements Entire Company Sales Yellow $550,000 $300,000 Cost of Sales $440,000 $400,000 Admin Cost $90,000 $10,000 Office Supplies Expense $60,000 $22,000 Book Value of Assets $4,590,000 $600,000 Fair Market Value of Assets $7,000,000 $340,000 Tax rate for 2016 30% Surf City decides to eliminate the Yellow Surfboard Division after seeing the above figures, so operations for this division stop by the end of 2016 and Assets were sold for the Fair Market Value. Income before Discontinued Operations Loss/Gain from Operation of Discounted Yellow Division Unrealized/Realized Loss/Gain from Disposal of Yellow Division