On July 1, Year 1, the board of directors of All Seasons Sports, Inc. voted to dispose of the Ski & Snowboard operating segment of the company.  On that date, the carrying value of the segment was $3,000,000, but the Board believed that it could sell the segment for no more than $2,500,000.  The company was committed to its plan to sell the segment and was actively looking for a buyer until April 1, Year 2, when the division was sold to We Love Winter, Inc. for a sales price of $3,200,000.  All Seasons Sports paid a brokers fee of 10% of the sales price when the transaction was closed.
 
 Ski & Snowboard's operating results were as follows:
  

                                                 

	1/1/Year 1 – 6/30/Year 1	($300,000)
	7/1/Year 1 – 12/31/Year 1	($400,000)
	1/1/Year 2 – 3/31/Year 2	($200,000)

   

 All Seasons Sports has a tax rate of 30%.
 
 Calculate the Gain/(Loss) from Discontinued Operations for Year 1 and Year 2:

   

A 1 2 Impairment Gain/(Loss) 3 Operating Gain/(Loss) 4 Gain/(Loss) on Disposal 5 Income Tax Benefit/(Expense) 6 Total Gain/(Loss) from Discontinued Operations B Year 1 ($500,000) ($500,000) $0 C Year 2 $0