Reporting Discontinued Operations On October 31, 2020, Laigh Corp approved a formal plan to dopose of Knit Products Division On December 31:2000, the Kit Products Division was held for sale but had not been sold, The Kit Products Dona parate but component reported a net loss from operations of $90,000 before tax for the year ended December 31, 2000. The Kit Products Division has a book value and fair valve after selling open of $40,000 and 540,000 pectively Leigh Corp reported income from continuing operations of $1.620,000 before tex for 2000 Assuming an income tax rate of 25% prepare an income statement beginning with income from Continuing Operations ignore sammings per share dedures gative sign to indicate a los Leigh Cary Income Statement Repeat the quants of part but now assume that the book value of the Kit Products Division is $560,000 on December 31,2020 a neprove sign to indicate a l Leigh Corp SSTPM ENG 2/23/2022 b. Repeat the requirements of part a but now assume that the book value of the Knit Products Division is $5,760,000 on December 31, 2020. Use a negative sign to indicate a loss. Leigh Corp. Income Statement Year Ended December 31, 2020 income from continuing operations Discontinued operations Loss from discontinued operations, net of tax savings Gain on discontinued component, net of tax Net income $ 0 O Questo Not changed since last mempe Marked out of 0.50 Reporting Discontinued Operations Flag question On October 31, 2020, Leigh Corp. approved a formal plan to dispose of its Knit Products Division. On December 31, 2020, the Knit Products Division was held for sale but had not been sold. The Knit Products Division (considered a separate business component) reported a net loss from operations of $909,000 before tax for the year ended December 31, 2020. The Knit Products Division has a book value and fair value (after selling expenses) of $6,480,000 and $5,940,000, respectively. Leigh Corp. reported income from continuing operations of $1,620,000 before tax for 2020 a Assuming an income tax rate of 25%, prepare an income statement beginning with Income from Continuing Operations: Ignore earnings per share disclosures Use a negative sign to indicate a loss Leigh Corp. Income Statement Year Ended December 31, 2020 Income from continuing operations Discontinued operations Loss from discontinued operations, net of tax savings Impairment loss in distantinued component, net of tax savings Net income b. Repeat the requirements of part a but now assume that the book value of the Knit Products Division is $5,750,000 on December 31, 2020. Use a negative sign to indicate a loss. Leigh Corp. Income Statement Year Ended December 31, 2020 Income from continuing operations Discontinued operations Loss from discontinued operations, net of tax savings Gain on discontinued component, net of tax Net income 0 S Previous Save Answers