On August 1, 2016, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations The disposal of the division was expected to be concluded by June 30, 2017. On January 31, 2017, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2016-Jan. 31.2017 $115,000 Estimated operating losses. Feb 1-June 30.2017 80,000 Impairment of division assets at Jan. 31.2017 10,000 In its income statement for the year ended January 31, 2017, Rocket would report a before-tax loss on discontinued operations of: $115,000. $195,000. $65,000. $125,000. The division's book value and fair value less cost to sell on December 31 were $3,000,000 and $2, 500,000, respectively. What before-tax amount(s) should Mercedes report as loss on discontinued operations in its 2016 income statement? $2,000,000 loss, $2, 500,000 loss. No loss would be reported. $500,000 impairment loss included in continuing operations and a $2,000,000 loss from discontinued operations. Major Co. reported 2016 income of $300,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $80,000. All income is subject to a 30% tax rate. In the 2016 income statement, Major Co. would show the following line-item amounts for income tax expense and net income: $66,000 and $210,000. $90,000 and $154,000. $90,000 and $276,000. $66,000 and $220,000. Use the following to answer questions 8 and 9: Misty Company reported the following before-tax items during the current year. Sales revenue $600 Operating expenses 250 Restructuring charges 20 Loss on discontinued operations 50 Misty's effective tax rate is 40%. What is Misty's income from continuing operations? $198. $210. $330. $360