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On August 1, 20x1, Sparky Mercantile adopted a plan to discontinue its children's clothing ASU Home My.ASU Colleges & division, which qualifies as a component

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On August 1, 20x1, Sparky Mercantile adopted a plan to discontinue its children's clothing ASU Home My.ASU Colleges & division, which qualifies as a component of the business according to GAAP. The disposal of the division was expected to be concluded by June 30, 20x2. On December 31, 20x1, Sparky's fiscal year-end, the following information relative to the discontinued operation was accumulated: Operating Income (pre-tax) Jan 1, 20x1 - Dec 31, 20x1 Estimated Operating Income (pre-tax) Jan 1, 20x2 - June 30, 20X2 Net Book Value of the Component at Dec 31, 20x1 Fair Value of the Component at Dec 31, 20x1 Estimated Disposal Costs 549,000 290,000 3,225,000 3,100,000 120,000 30% Income Tax Rate In its Income Statement for the year ended December 31, 20x1, Spar total Gain/Loss on Discontinued Operations (net of tax) of: $_ *Do not use dollar signs or commas when recording your your answer is a Loss, record your answer using () paren

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