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Wilson, Inc. sold one of its divisions that had been unprofitable for the past two years. The current period loss from operations of this division
Wilson, Inc. sold one of its divisions that had been unprofitable for the past two years. The current period loss from operations of this division totaled $30,000. Wilsons sale of the division created a gain of $16,000 on the sale of the divisions assets. The income tax rate is 40%. What amount will Wilson report as the income or loss from discontinued operations?
a. $14,000 loss
b. $9,600 gain
c. $8,400 loss
d. $18,000 loss
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