Kandon Enterprises, Incorporated, has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and, on November 15, 2024, Kandon adopted a formal plan to sell the division. The sale was completed on April 30 , 2025. At December 31, 2024, the component was considered held for sale. Consider the following: - On December 31, 2024, the company's fiscal year-end, the book value of the assets of the horse division was $460,000. On that date, the fair value of the assets, less costs to sell, was $400,000. - The before-tax loss from operations of the division for the year was $340,000. - The after-tax income from continuing operations for 2024 was $600,000. - The company's effective tax rate is 25%. \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ KANDON ENTERPRISES, INCORPORATED } \\ \hline \multicolumn{1}{|c|}{ Partial Income Statement } \\ \hline \multicolumn{1}{|c|}{ For the Year Ended December 31, 2024} \\ \hline Income from continuing operations & \\ \hline Discontinued operations: & \\ \hline & \\ \hline & \\ \hline & \\ \hline Net income (loss) & \\ \hline \end{tabular} KANDON ENTERPRISES, INCORPORATED Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations Discontinued operations: \begin{tabular}{|l|l|} \hline Loss from operations of discontinued component & \\ \hline Income tax benefit & \\ \hline & 0 \\ \hline Net income (loss) & \\ \hline \end{tabular}