Jacks Corporation Decided to Sell Its Playing Card Business Segment

Multiple Choice

Jacks Corporation decided to sell its playing card business segment for $600,000,on September 1,Year 1.The disposal date is November 1,Year 1.The book value of the segment's net assets is $550,000.The pre-tax income for the segment for the period January 1 - September 1,Year 1,was a loss of $80,000; the pre-tax income for the segment for September and October was $30,000.Assuming a tax rate of 40%,choose the correct reporting for discontinued operations in the income statement of Jacks Corporation,for the year ended December 31,Year 1.

A) Choice 1
B) Choice 2
C) Choice 3
D) Choice 4