Jules Inc. reported net income of $3,363,000, income from continuing operations of $3,600,000 (after tax), and a loss from a discontinued component of $960,000 (pretax) for the year ended December 31, 2020. The companys tax rate is 25%. The decision to dispose of the component was made on June 1, 2020, and the component was sold on November 30, 2020.

Required

Compute net proceeds from the sale of the discontinued component if the carrying value of the business component was $950,000 on November 30, 2020 (the date of sale).

Gain on disposal of discontinued component, before tax	Answer
Carrying value of the discontinued component	Answer
Net proceeds from the sale of the discontinued component	Answer