8.5.7

Problem 2-8 Discontinued operations components held for sale (LO2-5, LO2-6, LO2-8) For 20X1, Silvertip Construction, Inc., reported income from continuing operations (after tax) of $1,650,000. On November 15, 20X1, the company adopted a plan to dispose of a component of the business. This component qualifies for discontinued operations treatment. During 20X1, the component had pre-tax operating losses of $95,000. The component's assets had a book value of $760,000 on December 31, 20X1. A recent market value analysis of these assets placed their estimated selling price at $735,000, less a 6% brokerage commission. Management appropriately determines that these assets are impaired and expects to find a buyer for the component and complete the sale early in 20x2. Required: Prepare a partial income statement for Silvertip including EPS disclosures for the year ended December 31, 20X1. Begin at income from continuing operations. Assume a 21% income tax rate and 1,000,000 shares of outstanding common stock. (Round your answers to 2 decimal places under "Earnings per share".) Silvertip Construction, Inc. Partial Income Statement For the Year Ended December 31, 20X1 Discontinued operations: Earnings per share: Discontinued operations: Problem 2-8 Discontinued operations components held for sale (LO2-5, LO2-6, LO2-8) For 20X1, Silvertip Construction, Inc., reported income from continuing operations (after tax) of $1,650,000. On November 15, 20X1, the company adopted a plan to dispose of a component of the business. This component qualifies for discontinued operations treatment. During 20X1, the component had pre-tax operating losses of $95,000. The component's assets had a book value of $760,000 on December 31, 20X1. A recent market value analysis of these assets placed their estimated selling price at $735,000, less a 6% brokerage commission. Management appropriately determines that these assets are impaired and expects to find a buyer for the component and complete the sale early in 20x2. Required: Prepare a partial income statement for Silvertip including EPS disclosures for the year ended December 31, 20X1. Begin at income from continuing operations. Assume a 21% income tax rate and 1,000,000 shares of outstanding common stock. (Round your answers to 2 decimal places under "Earnings per share".) Silvertip Construction, Inc. Partial Income Statement For the Year Ended December 31, 20X1 Discontinued operations: Earnings per share: Discontinued operations