Results of Discontinued Operations

During December 2013, Smythe Company decides to sell Division F (a component of the company). On December 31, 2013, the company classifies Division F as held for sale. On that date, the book values of Division F's assets and liabilities are $950,000 and $600,000, respectively. Smythe expects to sell Division F in 2014 and estimates that the fair value of Division F is $250,000. During 2013, Division F earned revenues of $1,000,000 and incurred expenses of $1,300,000. Smythe is subject to a 30% income tax rate.

Required:

1. Compute the following for Division F of Smythe Company:

a) Pretax income or loss from discontinued operations

$

b) Income tax expense or credit for discontinued operations	$

c) After tax income or loss from discontinued operations	$

d) Pretax income or loss on write-down of Division F held-for-sale	$

e) Income tax expense or credit for write-down of Division F held-for-sale	$

f) After tax income or loss on write-down of Division F held-for-sale	$

2. Prepare the results from discontinued operations section of Smythe income statement for 2013.

Results from discontinued operations:

from operations of discontinued Division F

	$

on write-down of held-for-sale Division F

	$
Total	$