Essay
Turnbull Ltd. decided on January 1, 2007 to discontinue its plastic-making division. The division, properly identified as a reportable segment, was sold on June 1, 2001. Division assets with a carrying value of $800,000 were sold for $500,000. Operating income from January 1, to May 30, 2007 for the division amounted to $125,000. Income taxes are at the rate of 45%. What amount should be reported on Turnbull's income statement for the year ended December 31, 2007 under the caption "discontinued operations"?
Correct Answer:
Verified
Correct Answer:
Verified
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