What am I doing wrong here please. The format has to be this way. I can\'t seem

Question

What am I doing wrong here please. The format has to be this way. I can't seem to get the concept of this. Thank you. If possible can you please put in steps. Thank you. DISCONTINUED OPERATIONS EXERCISE In 2015, Laetner Industries decided to discontinue its Laminating Division, a separately- * The assets of the Laminating Division were sold on July 31; there was a $50,000 pre- *Between Jan 1 and July31, the Laminating Division generated a pre-tax net loss of $20,000. gain on the disposal. Excluding the 2015 pre-tax loss generated by the Laminating Division, Laetner had a pre-tax profit of $89,000 for 2015 Assuming a 35% tax rate Industries' income statement for the year ending December 31, 2015. e the discontinued operations section of Laetner USE THE FORMAT USED IN THE POWERPOINT SLIDE POSTED ON BLACKBOARD*but be careful to note what is a gain and what is a long and what figures to add/substract. rom HoLom Tak

Explanation / Answer

The income from continuing operations is $39000 i.e difference between 89000 nd 50000 as 50000 is income from discontinuing operation and 89000 is total income fr 2015.

Income from continuing operations before income taxes (89000-50000) $39000 Income taxes39000*35% ($13650) Income from continuing operations $25350 Discontinued operations Loss from operations of discontinued business component (20000) Income tax benefit 20000*35% 7000 Loss on discontinued operations (13000) Net income $25350- (13000) =12350

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