Part B (29 minutes, 21 marks) The following is information for Corner Brook Inc. for the year 2022: Corner Brook Inc's capital structure consists of 60,000 shares of common stock. At December 31, 2022an analysis of the accounts and discussions with company officials revealed the following partial information:

Heffler Enterprises has just signed an agreement to sell its Transportation Division in order to focus effort on the forestry side of the operations. For purposes of income statement reporting, the Transportation Division qualifies as a separate component of the business. The Transportation Division incurred a net loss of $888,000 from the beginning of the year to the date of the sale, December 15, 2022. The combined assets of the Transportation Division had a book value of $1,480,000 and were sold for $1,760,000 on December 15, 2022. Assume Heffler has a tax rate of 25 percent. Instructions: Prepare the Discontinued operations section of the income statement for December 31, 2022. Assume Income from continuing operations after tax is $940,000. Income before tax Income tax Income from continuing operations $940,000 Discontinued operations Gain on sale of assets after tax $210,000 (1760000-1480000)(1-0.25) Loss from operations from discontinue business -666000 (888000-25%) -456000 Net Income 484000