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On September 1, 2017, Pebble Inc. approved a plan to dispose of a segment of its business. Pebble expected that the sale would occur on

On September 1, 2017, Pebble Inc. approved a plan to dispose of a segment of its business. Pebble expected that the sale would occur on March 31, 2018, at an estimated gain of $350,000. The segment had actual and estimated operating profits (losses as follows):

Realized loss from 1/1/17 to 8/31/17

$(300,000)

Realized loss from 9/1/17 to 12/31/17

(200,000)

Expected profit from 1/1/18 to 3/31/18

400,000

Assume a marginal tax rate of 20%. In its 2017 income statement, what should Pebble report as profit or loss from discontinued operations (net of tax effects)?

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