operations Selling and administrative expense Computation of Income from Discontinued Operations 450 ctice 4-12 le ming Company has two divisions, E and N. Both qualify as business components. In 2015, the firm de cides to dispose of the assets and liabilities of Division N it is probable that the disposal will be completed early next year. The revenues and expenses of Fleming for 2014 and 2015 are as follows: 2015 2014 $5,000 4,400 3,500 3,900 $4,600 4,100 5,100 4,500 Sales--E Total nontax expenses-E Total nontax expenses-N During the later part of 2015, Fleming disposed of a portion of Division N and recognized a pretax loss of $2,000 on the disposal. The income tax rate for Fleming Company is 30%. Prepare the 2015 comparative income statement. Practice 4-13 Computation of Income from Discontinued Operations Refer to the data in Practice 4-12. Repeat the exercise, assuming that Division E is being discontinued. Also assume that instead of a $2,000 pretax loss on the disposal, there was a $1,500 pretax gain Gains and Losses on Extraordinary Items Use the following information to compute income from continuing operations and net income. Assume the Practice 4-14 the income tax rate on all items is 40%. Loss from an unusual and infrequent event $ (800 25,000 $14,000 Cost of goods sold Interest expense Loss from an unusual but frequent event Selling and administrative expense 2,400 Sales (3,000) 2,250 Dividends Gain from a normal but infrequent event 1,00