In the 2009 income statement for Foxtrot Co., it would report income from discontinued operations of:
A)$ 9.2 million.
B)$13.2 million.
C)$ 22 million.
D)$ 26 million.60% (i.e., 1 tax rate) $22 million ($32 million gain on asset sale $10 million operating loss)

Question

Quizplus · Accepted Answer

The income from discontinued operations is calculated as the gain on asset sale ($32 million) minus the operating loss ($10 million), which equals $22 million. After applying the tax rate of 60%, the net income from discontinued operations is $13.2 million.

In the 2009 Income Statement for Foxtrot Co