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  3. on june 30,2020 parent co. decided to discontinue

On June 30,2020 Parent Co. decided to discontinue operations in Sub Co. ...

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Accounting

On June 30,2020 Parent Co. decided to discontinue operations in Sub Co.
Sub Co.s operating Income to June 30,2020 was $ 7 million.
Sub Co. suffered an operating loss from July 1/20 to June 30/21, of $5 million of which,
$2 million was July 1 Dec 31/20.
Sub Cos tax rate on all Income and Losses is 40%.
On Dec 31/20 Sub Co.s net assets were expected to be disposed of at a net loss of $29 million by June 30/21.
On June 30/21 actual disposal was $24.2 million (Assume assets considered held for sale)
Sub Co was also expected to incur $1 million additional legal and site restoration costs in the disposal.
On June 30/21 actual costs were $800 thousand.
Present the required F/S presentation, for 2020 and 2021.
Partial Income Statement Parent Co. For the period ended Dec 31,2020

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