Question - The Dodd-Laurel Corporation had two operating divisions, one manufacturing tires and the other seatbelts. On September 15, 2014, the company decided to sell the assets of the seatbelt division. The actual sale was made effective on December 8, 2014, at a price of $1,800,000. The book value of the division's asset was $3,000,000 resulting in a before-tax loss of $1,200,000 on the sale.
The division incurred before-tax operating losses of $300,000 from the beginning of the year to September 15, and $90,000 from September 16 through December 8. The income tax rate is 40%. Dodd-Laurel's after-tax income from its continuing operations is $1,050,000.
Prepare Dodd-Laurel's income statement for 2014 beginning with "income from continuing operations." Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. Show all calculations to get partial credit.