Discontinued Operations

On May 31, 2016, top management of Stafford Manufacturing Co. decided to dispose of an unprofitable business component. An operating loss of $210,000 associated with the component was incurred during the year. The plant facilities associated with the business segment were sold on November 30, and a $23,000 gain was realized on the sale of the plant assets.

Required: Assuming a 40% tax rate, prepare the discontinued operations section of Stafford Manufacturing Co.s income statement for the year ending December 31, 2016.