Problem
After studying the resources required for discontinued operations , answer the following exercises:
On September 1, 2019, Table Town Co. approved a plan to divest a segment of its business. Table Town Co. expects the sale to occur on March 31, 2020, with an estimated gain of $455,000. Current and estimated operating profits and/or losses are shown below:
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Loss from August 1, 2019 to August 31, 2019
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(390.000)
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Loss from September 1, 2019 to December 31, 2019
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(260.000)
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Expected profit from January 1, 2020 to March 30, 2020
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520.000
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Suppose the marginal tax rate is 34%.
Exercise Requirement: On its 2019 statement of income and expenses, what should Table Town Co. report as profit or loss from discontinued operations?