Halifax Husky Ltd., a private company based in Vancouver, decided to sell its Industrial Design Division. After two years of losses and heavy competition, a plan to dispose of the division was put in place. At the end of 2017, the plan was finalized and approved by the board of directors. The sale is anticipated to be completed by June 30, 2018. Husky has a December 31 year-end.

Other information:

i. Halifax Husky's 2017 before-tax net income (excluding the results from the Industrial Design Division) was $450,000.

ii. During the year, the Industrial Design Division reported a loss of $120,000 before tax (revenues: $30,000, expenses: $150,000).

iii. Management estimates that legal and audit fees of $32,000 as well as severance payments of $66,000 will be required to finalize the disposal plan. A portion of these costs is expected to be offset by the proceeds of $61,000 from the sale of the division's assets.

iv. Halifax Husky pays income taxes at a rate of 25%.

Required: 1. Assuming the Industrial Design Division qualifies for treatment as a discontinued operation, prepare a partial income statement for Halifax Husky Ltd. for 2017. (Hint: The statement should begin with income from continuing operations before tax and include an appropriate footnote pertaining to the disposal of the Industrial Design Division.) (8 marks)

2. Explain how this presentation is useful to evaluate Halifax Huskys performance. (2 marks)

Income from operation Before tax				450000
Loss			-120000
				330000
income tax exp				82500
income from continuing operating				247500
Loss from discontinued operation				-98000
Income from sale of asset				61000
Net income				210500

This is what I got. please check it.