GADGET WORLD, Inc. is an electronics retailer. In addition to operating its Gadget World product stores, for the last 5 years the company has run a service division called "Nerd Pa- trol"-that offered installation and repair service to its custom- ers. The service business has not been as successful as man- agement had hoped and the decision was made and announced on October 31, 2016 to get out of the service business. At this date, the applicable tax rate is 30% Case 2: Disposal Date After Year-End In this case, the disposal occurs after year end so at the end of 2016, the Services division is classified as "held for sale Since the sale has not yet occurred, we can't recognize a gain or loss on the actual sale. But we must evaluate whether we expect a loss when the sale is completed, and, if so, record an IMPAIRMENT LOSS to reduce the carrying value of the as sets The following worksheet shows GADGET WORLD's operat- ing results. Note that the 2016 operating results for the Ser vices Division have changed since they include results for the full year through Dec. 31, 2016. The results for 2015 are un changed 2016 2001 Company Divisions Company Divisions Total Services Products Total Services Products Sales $235,000 $75,000 $160,000 S230,000 S80,000 $150,000 Cost of Goods Sold $75,00 $25,000 $50,000 S110,000 S25,000 $85,000 $160,000 $50,000 $110,000 $120.000 $55.000 $65,000 Gross Pr Less: Operating Expenses $10,000 $5,000 $5,000 $10,000 $5,000 $5,000 $105.000 S110,000 S50,000 $60,000 $150,000 $45,000 Operating Income (lo Impairment Loss ncome before taxes ncome ta expense/(benefit) Net Income (loss 2016 Services Div. operating income includes activity thru 12/3 The assets of the Services Division still have a carrying value of $2,000,000. But, the company now estimates that the fair value of the Services Division (expected selling price) to be $2,100,000, and $150,000 of costs are expected to complete the sale. Therefore, the expected proceeds o the sale are $1,950,000 Required (continued on the next page): 1) What is the gain or loss expected on this disposal? Complete the "Impairment Loss" and "Income before taxes" rows of the worksheet above