Problem: Blossom Ltd., a private company based in Vancouver, decided to sell its Industrial Design Division. After two years of losses and heavy competition, a plan to dispose of the division was put in place. At the end of 2023, the plan was finalized and approved by the board of directors. The sale is anticipated to be completed by June 30 , 2024 Other information:
1. Blossom's 2023 after - tax income (excluding the results from the Industrial Design Division) was $ 465,000.
2. During the year, the division reported an after - tax loss of $ 124,000 (revenues: $ 31,000, expenses: $ 155,000 ).
3. Management estimates that after - tax legal fees of $ 33,100 as well as after - tax severance payments of $ 68,200 will be required to finalize the disposal plan. A portion of these costs is expected to be offset by the after - tax proceeds of $ 63,000 from the sale of the division's assets. Assuming the Industrial Design Division qualifies for treatment as a discontinued operation, prepare a partial income