Reference no: EM132794895

Question - Hibou ltd a private company based in Vancouver decided to sell its industrial design division. At the end of 2017 the plan was finalized and approved by the board of directors the sale is anticipated to be completed by June 30, 2018. After two years of losses and heavy competition a plan to dispose of the division was put in place. At the end of 2017 the plan was finalized and approved by the board of directors. The sale is anticipated to be completed by June 30, 2018.

Other information - Hibous 2017 after tax net income excluding the result from the industrial Design division was $405,000 during the year the division reported after tax loss of $110,000 revenues $35000 expenses $145000 management estimates that after tax legal and audit fees of $23000 as well as severance of 67000 will be required to finalize the plan. A portion of these costs is expected to be offset by the after tax proceeds of $65000 from sale of the divisions assets

At the beginning of the company's fiscal year 150,000 common share were issued and outstanding. As of July 1, 2017 50,000 more shares were sold to investors.

Assuming the industrial Design Division qualifies for treatment as a discontinued operation, prepare partial income statement for Hibbu for 2017. The statement should begin with income from continuing operations and include an appropriate footnote pertaining to the disposal of the Industrial Design Division. Remember to include EPS.