QUESTION 20

1. On 11/1/19, Quarles Inc. adopted a plan to discontinue its barge division. The company plans to sell the division on 4/30/20, but the division is not sold as of 12/31/19, the company's year end. On 12/31/19, the following information regarding the discontinued division is accumulated:

   Operating loss of the division for the year $65 million Fair value of division $25 million

   Book value of division $30 million

   Additional Information: Quarles effective tax rate is 25%.

   Quarles would report in its 2019 multiple-step income statement a loss on discontinued operations of:

   	A.	$52.5 million.
   	B.	$70 million.
   	C.	$65 million.
   	D.	$48.75 million.