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During fiscal year 2020 the company sold one of theirkey divisions. The following information has been provided for this discontinued operation. Sold the Garage Door Division on October 31, 2020 | $ 1,30000 Gain from operations of discontinued Garage Door divisionfromJanuaury 1, 2020 through October 31, 2020. $ 12,50000 Gain from sale of the Garage Doordivision on October 31, 2020. Note: The operating gain of $13 million and gain fromthe sale of $125 million are both pre-tax amounts. The company C.F.O. has detemined thata 30%% tax rate should be applied. ed: Prepare the Discontinued Operations section for the income statement.

During fiscal year 2020 the company sold one of theirkey divisions. The following information has been provided for this discontinued operation. Sold the Garage Door Division on October 31, 2020 | $ 1,30000 Gain from operations of discontinued Garage Door divisionfromJanuaury 1, 2020 through October 31, 2020. $ 12,50000 Gain from sale of the Garage Doordivision on October 31, 2020. Note: The operating gain of $13 million and gain fromthe sale of $125 million are both pre-tax amounts. The company C.F.O. has detemined thata 30%% tax rate should be applied. ed: Prepare the Discontinued Operations section for the income statement.

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Problem 3- Discontinued Operations| 24 During fiscalyear 2020 the company sold one of theirkey divisions. The following information has been provided for this discontinued operation. Sold the Garage Door Division on October 31, 2020 $ 1,30,000 Gain from operations of discontinuedGarage Door divisionfromJanuaury 1, 2020 through October 31, 2020. $ 12,500,000 Gain from sale of the Garage Doordivision on Octaber 31, 2020. Note: The operating gain of $13 millionand gain fromthe sale of $12.5 million are both pre-tax amounts. The company CF.O. has detemined that a 30% tax rate should be applied. Required: Prepare the Discontinued Operations section for the income statement.
Transcribed Image Text:Problem 3- Discontinued Operations| 24 During fiscalyear 2020 the company sold one of theirkey divisions. The following information has been provided for this discontinued operation. Sold the Garage Door Division on October 31, 2020 $ 1,30,000 Gain from operations of discontinuedGarage Door divisionfromJanuaury 1, 2020 through October 31, 2020. $ 12,500,000 Gain from sale of the Garage Doordivision on Octaber 31, 2020. Note: The operating gain of $13 millionand gain fromthe sale of $12.5 million are both pre-tax amounts. The company CF.O. has detemined that a 30% tax rate should be applied. Required: Prepare the Discontinued Operations section for the income statement.
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Discontinued Operations

Discontinued operations is separate component in the entity's income statement that provides details regarding entity's operations that have been divested or shut down. 

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