Results of Discontinued Operations

On November 30, 2016, Fleiner Company announced its plans to discontinue the operations of Division P (a major component of the company) by selling the division. On December 31, 2016, Division P had not yet been sold and was classified as held for sale. On this date, Division P had assets with a book value of $920,000 and liabilities with a book value of $610,000. Fleiner estimates that the fair value of Division P on this date is $190,000. During 2016, Division P earned revenues of $920,000 and incurred expenses of $980,000. Fleiner is subject to a 30% income tax rate.

Required:

1. Compute the following for Division P of Fleiner 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 P held-for-sale	$
e) Income tax expense or credit for write-down of Division P held-for-sale	$
f) After tax income or loss on write-down of Division P held-for-sale	$

2. Prepare the results from discontinued operations section of Fleiner's income statement for 2016.

Results from discontinued operations:
Gain or loss from operations of discontinued Division P net income tax credit or net of income tax expense	$
Gain or loss on write-down of held-for-sale Division P net income tax credit or net of income tax expense	$
Total	$