Question
Rhythms, Inc. committed to sell a division on March 22, 2018. It sold the division on June 14, 2020. Income from operating this division was
Rhythms, Inc. committed to sell a division on March 22, 2018. It sold the division on June 14, 2020. Income from operating this division was $3,350,000, $1,006,000, and $364,000 in 2018, 2019 and 2020, respectively. On December 31, 2018, the carrying value of the division was $8,960,000 and the fair value was $8,660,000. On December 31, 2019, the fair value of the division was $9,360,000 and the carrying value of the division was $8,960,000. The division was sold for $8,800,000 when the carrying value was $8,960,000. Prepare the discontinued operations section of the income statement for 2018 through 2020, assuming Rhythms' income tax rate is 40%. (Use parentheses or a minus sign to enter any loss amount. If a box is not used in the table, leave the boxempty; do not select a label or enter a zero.)
Rhythms, Inc.
Partial Income Statement
For the Year Ended December 31
2018 | 2019 | |
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Income from Discontinued Operations | ??? | ??? |
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