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Reporting on Discontinued OperationsDisposal in Current Year

On August 1, Fischer Inc. decided to discontinue the operations of its Services Division, which qualifies as a business component. An agreement was formalized to sell this component for $234,000 cash. The book value of the assets of the Services Division was $270,000. The disposal date was August 1. The income tax rate is 25%, and the accounting year-end is December 31. On December 31, the pretax income from all operations, including an operating loss of $30,000 incurred by the Services Division prior to August 1 was $600,000. However, the amount of $600,000 does not include any gain or loss from the sale of the discontinued component.There were 80,000 weighted average common shares outstanding during the year.

Required

Prepare a partial income statement beginning with income from continuing operations. Include the earnings per share disclosures.

• Use a negative sign to indicate a loss.
• Enter the answers for per share amounts in dollars and cents, rounded to the nearest penny.

Impairment loss on discontinued component, net of tax savingsIncome before income taxesIncome from continuing operationsIncome from discontinued component, net of taxIncome tax expenseLoss from continuing operationsLoss from discontinued component, net of tax savingsNet income
Discontinued operations
Impairment loss on discontinued component, net of tax savingsIncome before income taxesIncome from continuing operationsIncome from discontinued component, net of taxIncome tax expenseLoss from continuing operationsLoss from discontinued component, net of tax savingsNet income
Loss on disposal of discontinued component, net of tax savings
Impairment loss on discontinued component, net of tax savingsIncome before income taxesIncome from continuing operationsIncome from discontinued component, net of taxIncome tax expenseLoss from continuing operationsLoss from discontinued component, net of tax savingsNet income
Per share:
Impairment loss on discontinued component, net of tax savingsIncome before income taxesIncome from continuing operationsIncome from discontinued component, net of taxIncome tax expenseLoss from continuing operationsLoss from discontinued component, net of tax savingsNet income
Impairment loss on discontinued component, net of tax savingsIncome before income taxesIncome from continuing operationsIncome from discontinued component, net of taxIncome tax expenseLoss from continuing operationsLoss from discontinued component, net of tax savingsNet income
Loss on disposal of discontinued component, net of tax savings
Impairment loss on discontinued component, net of tax savingsIncome before income taxesIncome from continuing operationsIncome from discontinued component, net of taxIncome tax expenseLoss from continuing operationsLoss from discontinued component, net of tax savingsNet income

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