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Reporting on Discontinued Operations—Disposal in Current Year On August 1, 2020, Fischer Inc. decided to discontinue the operations...

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Accounting

Reporting on Discontinued Operations—Disposal in CurrentYear

On August 1, 2020, Fischer Inc. decided to discontinue theoperations of its Services Division, which qualifies as a businesscomponent. An agreement was formalized to sell this component for$436,800 cash. The book value of the assets of the ServicesDivision was $504,000. The disposal date was August 1, 2020. Theincome tax rate is 25%, and the accounting year-end is December 31.On December 31, 2020, the pretax income from all operations,including an operating loss of $56,000 incurred by the ServicesDivision prior to August 1, 2020, was $1,120,000. There were150,000 weighted average common shares outstanding during 2020.

Required

Prepare a partial income statement beginning with income fromcontinuing operations. Include the earnings per sharedisclosures.

  • Use a negative sign to indicate a loss.
  • Round the per share amounts to two decimal places.
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Discontinued operations

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Loss on disposal of discontinued component, net of taxsavings

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Per share:

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Loss on disposal of discontinued component, net of taxsavings

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