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On November 15, 2016, Jacobs Co. sold a segment of its business for $2,750,000. The net book value of the segment at the time of
On November 15, 2016, Jacobs Co. sold a segment of its business for $2,750,000. The net book value of the segment at the time of its disposal was $3,000,000. Jacobs had pretax operating income of $1,750,000 for 2016 which included $380,000 earned by the discontinued segment prior to its disposal. Assume Jacobs tax rate is 30%.
Question: (Required) Prepare in good form the discontinued operations section of the income statement for 2016. Provide supporting calculations.
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