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Reporting Discontinued Operations On October 31, Leigh Corp. approved a formal plan to dispose of...

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Accounting

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Reporting Discontinued Operations On October 31, Leigh Corp. approved a formal plan to dispose of its Knit Products. Division. On December 31 , the Knit Products Division was held for sa reported a net loss from operations of $1,010,000 before tax for the year ended December 31 . The Knit Products Division has a book value and fair valu from continuing operations of $1,800,000 before tax for the year. a. Assuming an income tax rate of 25%, prepare an income statement beginning with Income from Continuing Operations, Ignore earnings pe - Use a negative sign to indicate a loss. b. Repeat the requirements of part a but now assume that the book value of the Knit Products Division is $6,400,000 on December 31 . - Use a negative sign to indicate a loss. December 31, the Knit Products Division was held for sale but had not been sold. The Knit Products Division (considered a separate business component) . The Knit Products Diviion has a book value and fair value (after selling expenses) of $7,200,000 and $6,600,000, respectively, Leigh Corp, reported income come from Continuing Operations. Ignore earnings per share disclosures. 5 Division is $6,400,000 on December 31

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