Question 12 Partially correct Mark 0.30 out of 0.83 P Flag question O Edit question Reporting Discontinued Operations-Disposal in Subsequent Year On October 1, 2020, Blain Company approved a formal plan to sell the McKay Division, considered a component of the business. The sale will occur on March 31, 2021. The division had operating income of $500,000 (pretax) for the year ended December 31, 2020, but expects to incur an operating loss of $100,000 for the first quarter of 2021. Blain determines the carrying value and fair value (net of selling costs) of the McKay Division to be $5,000,000 and $4,800,000, respectively, on December 31, 2020. Blain's tax rate for 2020 is 25%. Weighted average number of common shares outstanding in 2020 is 300,000. Required a. Assume Blain Company's income from continuing operations is $2,300,000. Prepare a partial income statement beginning with income from continuing operations. Include earnings per share disclosures. Use a negative sign to indicate a loss. Enter the answers for per share amounts in dollars and cents, rounded to the nearest penny. $ 2,300,000 x 100,000 x 2,200,000 x 0 x $ Income from continuing operations Discontinued operations Loss on disposal of discontinued component, net of tax saving Impairment loss on discontinued component, net of tax savings Loss from continuing operations Per share: Income from continuing operations Income before income taxes x Impairment loss on discontinued, component, net of tax savings Net income OX OX 0 x 0 X b. How does the answer to part a change if the fair value of the McKay Division's net assets were $5,200,000 instead of $4,800,000 on December 31, 2020? Use a negative sign to indicate a loss. Enter the answers for per share amounts in dollars and cents, rounded to the nearest penny. $ 2,300,000 0 x X $ 0 x Income from continuing operations Discontinued operations Loss from continuing operations A X Impairment loss on discontinued component, net of tax savings Loss on disposal of discontinued component, net of tax savings Per share: Income from continuing operations Income before income taxes Impairment loss on discontinued, component, net of tax savings Net income $ 0 x 0 x O $ 0 x