Queen Corporation decided to sell its furniture business segment for $400,000,on September 1,Year 1,which is also the disposal date.The book value of the segment's net assets is $500,000 on this date.The pre-tax income for the segment for the period January 1 - September 1,Year 1,was $150,000.Assuming a tax rate of 40%,choose the correct reporting for discontinued operations in the income statement of Queen Corporation,for the year ended December 31,Year 1. $$\begin{array} { | l | l | l | }
\hline & \text { Income (loss) from } & \text { Gain (loss) from disposal } \
\hline & \text { Discontinued operations } & \text { of discontinued operations } \
\hline 1 & \$ 90,000 & ( \$ 60,000 ) \
\hline 2 & \$ 150,000 & ( \$ 100,000 ) \
\hline 3 & \$ 30,000 & \$ 0 \
\hline 4 & \$ 0 & \$ 30,000 \
\hline
\end{array}$$

Question

Queen Corporation decided to sell its furniture business segment for $400,000,on September 1,Year 1,which is also the disposal date.The book value of the segment's net assets is $500,000 on this date.The pre-tax income for the segment for the period January 1 - September 1,Year 1,was $150,000.Assuming a tax rate of 40%,choose the correct reporting for discontinued operations in the income statement of Queen Corporation,for the year ended December 31,Year 1. $$\begin{array} { | l | l | l | } 
\hline & \text { Income (loss) from } & \text { Gain (loss) from disposal } \
\hline & \text { Discontinued operations } & \text { of discontinued operations } \
\hline 1 & \$ 90,000 & ( \$ 60,000 ) \
\hline 2 & \$ 150,000 & ( \$ 100,000 ) \
\hline 3 & \$ 30,000 & \$ 0 \
\hline 4 & \$ 0 & \$ 30,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Queen Corporation decided to sell its furniture business segment for $400,000,on September 1,Year 1,which is also the disposal date.The book value of the segment's net assets is $500,000 on this date.The pre-tax income for the segment for the period January 1 - September 1,Year 1,was $150,000.Assuming a tax rate of 40%,choose the correct reporting for discontinued operations in the income statement of Queen Corporation,for the year ended December 31,Year 1. $$\begin{array} { | l | l | l | } 
\hline & \text { Income (loss) from } & \text { Gain (loss) from disposal } \
\hline & \text { Discontinued operations } & \text { of discontinued operations } \
\hline 1 & \$ 90,000 & ( \$ 60,000 ) \
\hline 2 & \$ 150,000 & ( \$ 100,000 ) \
\hline 3 & \$ 30,000 & \$ 0 \
\hline 4 & \$ 0 & \$ 30,000 \
\hline
\end{array}$$

Queen Corporation Decided to Sell Its Furniture Business Segment for $400,000,on