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Exercise 4.8 (Algo) Discontinued operations; disposal in subsequent year [LO4.4] Kandon Enterprises, Incorporated, has two operating divisions; one manufactures machinery and the other breeds and

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Exercise 4.8 (Algo) Discontinued operations; disposal in subsequent year [LO4.4] Kandon Enterprises, Incorporated, has two operating divisions; one manufactures machinery and the other breeds and selis horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and, on November 15, 2024, Kandon adopted a formal plan to sell the division. The sale was completed on April 30 , 2025. At December 31, 2024, the component was considered held for sale Consider the following: - On December 31,2024 , the company's fiscal year-end, the book value of the assets of the horse division was $295.000 On that date, the fair value of the assets, less costs to sell, was $250,000 - The before-tax loss from operations of the division for the year was $190,000 - The after-tax income from continuing operations for 2024 was $450,000 - The company's effective tax rate is 25%. Required: 1. Prepare a partial income statement for 2024 beginning with income from continuing operations lgnore EPS disclosures. 2. Prepare a partiai income statement for 2024 beginning with income from continuing operations. Assume that the estimated net fair value of the horse division's assets was $500,000, instead of $250,000, ignore EPS disclosures. Complete this question by entering your answers in the tabs below. Prepare a partial income statement for 2024 beginning with income from continuing operations. Ignore EDS disclosures Note: Amounts to be deducted should be indicated with a minus sign: Exercise 4-8 (Algo) Discontinued operations; disposal in subsequent year [LO4-4] Kandon Enterprises, Incorporated, has two operating divisions, one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and, on November 15, 2024, Kandon adopted a formal plan to sell the division. The sale was completed on April 30 . 2025. At December 31, 2024, the component was considered held for sale. Consider the following - On December 31, 2024, the company's fiscal year-end, the book value of the assets of the horse division was $295,000 On that date, the fair value of the assets, less costs to sell, was $250,000 - The before-tax loss from operations of the division for the year was $190,000 - The after-tax income from continuing operations for 2024 was $450,000. - The company's effective tax rate is 25%. Required: 1. Prepare a partial income statement for 2024 beginning with income from continuing operations. Ignore EPS disclosures. 2. Prepare a partial income statement for 2024 beginning with income from continuing operations. Assume that the estimated net fair value of the horse division's assets was $500,000, instead of $250,000. Ignore EPS disclosures. Complete this question by entering your answers in the tabs below. Prepare a partial income statement for 2024 beginning with income from continuing operations. Assume that the estimated net fair value of the horse division's assets was $500,000, instead of $250,000. Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus slgn

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