Having a hard time with this. please help. In 2015, Laetner Industries decided t

Question

Having a hard time with this. please help.

In 2015, Laetner Industries decided to discontinue its Laminating Division, a separately-identifiable component of Laetner's business. The assets of the Laminating Division were sold on July 31; there was a $50,000 pretax gain on the disposal. Between Jan 1 and July31, the Laminating Division generated a pre-tax net loss of $20,000. Excluding the 2015 pre-tax loss generated by the Laminating Division, Laetner had a pre-tax profit of $89,000 for 2015. Instructions: Assuming a 35% tax rate, prepare the discontinued operations section of Laetner Industries' income statement for the year ending December 31, 2015.

Explanation / Answer

Laetner Industries Income Statement of Discontinued Operation For the period ending Dec31.2015. Details Amt $ Pre Tax Gain On Asset Disposal                     50,000 Operating Loss before Tax                   (20,000) Net Pretax Gain/(Loss) from Discontinued Operation                     30,000 Tax Benefit/(Cost) @35%                   (10,500) Net Income/(Loss) from Discontinued Operation                     19,500

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