Question
Flexsteel Industries manufactures furniture for the retall, contract, and recreational vehicle furniture markets. On September 1, 2021, Flexsteel enters into a tentative agreement to
Flexsteel Industries manufactures furniture for the retall, contract, and recreational vehicle furniture markets. On September 1, 2021, Flexsteel enters into a tentative agreement to sell the assets of Its Office Furniture division. This division qualifies as a component of the entity according to GAAP regarding discontinued operations. The division's contribution to Flexsteel's operating Income for 2021 was a $2.60 million loss before income tax. Flexsteel has an average tax rate of 25%. Assume that Flexsteel sold the division's assets on December 31, 2021, for $23.60 million. The book value of the division's assets was $18.64 million at that date. Required: What would Flexsteel report in its 2021 income statement regarding the Office Furniture division? (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) Income from discontinued operations million
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