Suppose that the Footwear Division's assets had not been sold by December 31,2016,but were considered held for sale.Assume that the fair value of these assets at December 31 was $40 million.In the 2016 income statement for Foxtrot Co. ,it would report a loss from discontinued operations of:

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The loss from discontinued operations would be the difference between the carrying amount (book value) of the assets and the fair value, which in this case is $50.8 million ($10.8 million more than the fair value). Therefore, the loss from discontinued operations would be $10.8 million.

Suppose That the Footwear Division's Assets Had Not Been Sold