Discontinued Operations Problem. On September 1, 2016, the Brown Company announced its plans to sell Division X (a component of the company). By December 2016, Brown Company had not sold Division X and so it classifies the division as held for sale. During 2016, Brown Company recorded the following revenues and expenses for Division X and the remainder of the company: Division X Remainder of Comp. Sales $500,000 $20,000,000 300,000 16,000,000 Cost of goods sold 1,500,000 Operating expenses 400,000 On December 31, 2016, Division X had $900,000 in assets and $300,000 of liabilities. On this date, Brown Company estimates that the fair value of Division X is $150,000. The company is subject to a 30% income tax rate. The company had 200, 000 shares of common stock outstanding during all of Required: Answer the following. Please use good form, label all calculations and clearly mark the final answer. You must show work to receive full credit. (a) Total income or loss from the discontinued segment should be reported at what amount on the 2016 income statement? Be sure to clearly indicate income or (loss). (b) If Division X sold at a gain of $500,000, what amount would be reported on the 2017 income statement for the gain from the sale? Edit View Insert Format Tools Table 12pt v Paragraph BI U A v Av Tv