Chapter 12, Problem 12.12E

LeBron’s Bookstores has two divisions, books and electronics. The electronics division had another great year in 2018 with net sales of $11 million, cost of goods sold of $6.5 million, operating expenses of $3 million, and income tax expense of $375,000. The book division did not do as well and was sold during the war. The loss from operations and sale of the book division was $900,000 before taxes and $675,000 after taxes.

Required:

Prepare the multiple-step income statement for LeBron’s Bookstores, including the proper reporting for the discontinued book division.