Maston Inc

Essay

Maston Inc., decided to dispose of its telephone manufacturing segment on March 1, Year 1 for $200,000 (book value of net assets, $150,000). The disposal date is June 1, Year 2. Income of the segment for the first two months of Year 1 was $33,000; and for the remainder of Year 1, $107,000. Estimated income for Year 2 to the disposal date is $64,000. Ignoring taxes, calculate the income or loss from discontinued operations and any gain or loss from the disposal of discontinued operations on the income statement of Maston Inc., for the year ended December 31, Year 1.