In 2016, Hye Industries decided to discontinue its Laminating Division, a separately identifiable component of Hye’s business. At December 31, 2016, the division has not been completely sold. However, negotiations for the final and complete sale are progressing in a positive manner, and it is probable that the disposal will be completed within a year. Analysis of the records disclosed the following: Operating loss for the year 899,000 Loss on disposal of some assets during 2016 50,000 Expected operating loss in 2017 450,000 Expected gain in 2017 on disposal of division 200,000 Assuming a 35% tax rate, how much will be reported as loss from discontinued operations in Hye’s 2016 income statement?
In 2016, Hye Industries decided to discontinue its Laminating Division, a separately identifiable component of Hye’s business. At December 31, 2016, the division has not been completely sold. However, negotiations for the final and complete sale are progressing in a positive manner, and it is probable that the disposal will be completed within a year. Analysis of the records disclosed the following:
|
Operating loss for the year |
899,000 |
|
Loss on disposal of some assets during 2016 |
50,000 |
|
Expected operating loss in 2017 |
450,000 |
|
Expected gain in 2017 on disposal of division |
200,000 |
Assuming a 35% tax rate, how much will be reported as loss from discontinued operations in Hye’s 2016 income statement?
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