5 On May 1, Foxtrot Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $30 milion. The sale was completed on December 31, 2016 The following additional facts pertain to the transaction 00:15:55 - The Footwear Division qualities as a component of the entity according to GAAP regarding discontinued operations . The book value of Footwear's assets totaled $48 million on the date of the sale. Footwear's operating income was a pre tax loss of $10 million in 2016, . Foxtrot's income tax rate is 10% oped In the 2016 Income statement for Foxtrot Co., it would report income from discontinued operations of Multiple Choice O $0.2 million $26 million $22 minion $9.2 million Present and future value tables of 1 at 11% are presented below. 4 PV of $1 1 0.90090 FV of $1 1.11000 PVA of $1 0.90090 FVA of $1 2 0.81162 1.0000 00:15:29 3 1.71252 1.23210 1.36763 0.73119 2.1100 2.44371 4 Skipped 0.65873 1.51807 3.10245 3.3421 4.7097 5 0.59345 0.53464 1.68506 3.69590 6 6.2278 1.87041 4.23054 7.9129 Polo Publishers purchased a multi-color offset press with terms of $40,000 down and a noninterest-bearing note requiring payment of $20,000 at the end of each year for six years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at: Multiple Choice $124,611 $84.611 $169,222 $60.000 3 Jacobsen Corporation prepares its financial statements applying U.S. GAAP. During its 2016 fiscal year, the company reported before-tax income of $621000. This amount does not include the following two items, both of which are considered to be material in amount: 00:15.00 Unusual gain $201.000 Skipped Loss on discontinued operations (301.000) The company's income tax rate is 30%. In its 2016 income statement Jacobsen would report income from continuing operations of Multiple Choice $621000 $575 400 $364,700 $434.700