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Assume that Novak Inc. decided to sell DemandTV Ltd., a subsidiary, on September 30, 2020. There is a formal plan to dispose of the business
Assume that Novak Inc. decided to sell DemandTV Ltd., a subsidiary, on September 30, 2020. There is a formal plan to dispose of the business component, and the sale qualifies for discontinued operations treatment. Pertinent data on the operations of the TV subsidiary are as follows: loss from operations from beginning of year to September 30, $1.8 million (net of tax of $700,000); loss from operations from September 30 to end of 2020, $500,000 (net of tax of $250,000); estimated loss on sale of net assets to December 31, 2020 (net of tax of $50,000), $190,000. The year end is December 31. Novak prepares financial statements in accordance with IFRS. Prepare the discontinued operations section of the income statement for the year ended 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Discontinued operations (2020)
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