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In October 2018, the management of Mankato Holding Company decided to sell one of its divisions that qualifies as a separate component according to generally

In October 2018, the management of Mankato Holding Company decided to sell one of its divisions that qualifies as a separate component according to generally accepted accounting principles. The division was sold on December 18, 2018. Consider the following facts related to the division:

  1. From January 1 through disposal, the division had a pretax loss from operations of $6,000,000.
  2. The assets of the division had a net selling price of $16,000,000 and a book value of $12,000,000.
  3. Mankato has a 30% effective tax rate.

What is the after-tax amount that Mankato would report on its income statement for discontinued operations? Note: If the amount is a net loss, then please enter a negative number as your answer.

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