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A company discontinues operations of Division P on October1, but has not sold the division as of year end. Assume a 25% tax rate.
A company discontinues operations of Division P on October1, but has not sold the division as of year end. Assume a 25% tax rate. If the fair value of net assets for the division on 12/31 is $400,000 and the book value is $300,000, the company will record a gain on the holdings of a discontinued segment, net of tax in an amount of $75,000. O True O False
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