Question
Reporting on Discontinued OperationsDisposal in Current Year On August 1, 2020, Fischer Inc. decided to discontinue the operations of its Services Division, which qualifies as
Reporting on Discontinued OperationsDisposal in Current Year
On August 1, 2020, Fischer Inc. decided to discontinue the operations of its Services Division, which qualifies as a business component. An agreement was formalized to sell this component for $436,800 cash. The book value of the assets of the Services Division was $504,000. The disposal date was August 1, 2020. The income tax rate is 25%, and the accounting year-end is December 31. On December 31, 2020, the pretax income from all operations, including an operating loss of $56,000 incurred by the Services Division prior to August 1, 2020, was $1,120,000. There were 150,000 weighted average common shares outstanding during 2020.
Required
Prepare a partial income statement beginning with income from continuing operations. Include the earnings per share disclosures.
- Use a negative sign to indicate a loss.
- Round the per share amounts to two decimal places.
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Discontinued operations | ||||
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Loss on disposal of discontinued component, net of tax savings | Answer | |||
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Per share: | ||||
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Loss on disposal of discontinued component, net of tax savings | Answer | |||
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