In 2017, Monty Corporation discontinued its retail store operations to focus on its online opportunities. The elimination of these retail operations is properly considered a discontinued operation. During the current year, its store operations lost $750,000 (net of tax) while its online operations reported a profit of $3,430,000 (net of tax). Monty sold the store operations at the end of the year at a loss of $1,340,000 (net of tax).
In 2017, Monty Corporation discontinued its retail store operations to focus on its online opportunities. The elimination of these retail operations is properly considered a discontinued operation. During the current year, its store operations lost $750,000 (net of tax) while its online operations reported a profit of $3,430,000 (net of tax). Monty sold the store operations at the end of the year at a loss of $1,340,000 (net of tax).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2017, Monty Corporation discontinued its retail store operations to focus on its online opportunities. The elimination of these retail operations is properly considered a discontinued operation. During the current year, its store operations lost $750,000 (net of tax) while its online operations reported a profit of $3,430,000 (net of tax). Monty sold the store operations at the end of the year at a loss of $1,340,000 (net of tax). Prepare an income statement for 2017 beginning with line item “Income from continuing operations.”
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