I know the Impairment gain/loss for Year 1= ($500000) & Year 2= $0
I think the Operating gain/loss for Year 1= ($700000) & Year 2= ($200000)
On July 1 Year 1 the board of directors of All Seasons Sports Inc. voted to dispose of the Ski & Snowboard operating segment of the company. On that date the carrying value of the segment was $3000000 but the Board believed that it could sell the segment for no more than $2500000. The company was committed to its plan to sell the segment and was actively looking for a buyer until April 1 Year 2 when the division was sold to We Love Winter Inc. for a sales price of $3200000. All Seasons Sports paid a brokers fee of 10% of the sales price when the transaction was closed. Ski& Snowboard’s operating results were as follows:
1/1/Year 1 6/30/Year 1 ($300000)
7/1/Year 1 12/31/Year 1 ($400000)
1/1/Year 2 3/31/Year 2 ($200000)
All Seasons Sports has a tax rate of 30%. Calculate the Gain/(Loss) from Discontinued Operations for Year 1 and Year 2:
Year 1 Year 2
Impairment Gain/(Loss)
Operating Gain/(Loss)
Gain/(Loss) on Disposal Income Tax Benefit/(Expense)
Total Gain/(Loss) from Discontinued Operations