Beaulieu Enterprises Inc

Essay

Beaulieu Enterprises Inc., decided to dispose of its men's fashions segment on March 1, Year 1 for $100,000 (book value of net assets, $80,000). 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 a loss of $40,000.
Required: 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 Beaulieu, for the year ended December 31, Year 1.