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On August 31, 2021 Husky Corp completed the sale of its Cougar division for $5 million. The Cougar division qualifies as a component of the
On August 31, 2021 Husky Corp completed the sale of its Cougar division for $5 million. The Cougar division qualifies as a component of the entity according to GAAP. The book value of Cougar's net assets at the time of sale was $4 million, and the division had a pre-tax net loss of $3 million for the year up to the point of sale. Husky's pretax income from continuing operations for the year totaled $20 million. The appropriate tax rate is 25%. Prepare the lower portion of Husky's income statement for 2021 beginning with Income from continuing operations before tax. Ignore EPS disclosures. Upload Choose a File
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