Compute net proceed from sale of the discontinued component

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Jules Inc. reported net income of $3,363,000, income from continuing operations of $3,600,000 (after tax), and a loss from a discontinued component of $960,000 (pretax) for the year ended December 31, 2020. The company's tax rate is 25%. The decision to dispose of the component was made on June 1, 2020, and the component was sold on November 30, 2020.

Required

Question 1: Compute net proceeds from the sale of the discontinued component if the carrying value of the business component was $950,000 on November 30, 2020 (the date of sale).

  • Gain on disposal of discontinued component, before tax $
  • Carrying value of the discontinued component
  • Net proceeds from the sale of the discontinued component $

Reference no: EM132463400

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