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Question - A company has approved a formal plan to sell its food division. A detailed plan has been approved by the board of directors and a buyer was confirmed. The division only has one asset on the books at $11 million (estimated selling price is $9.5 million). During the year, the division incurred a loss from operation of $2.2 million (net of tax of $0.55 million). The company has reported Net Income of $6.1 million. What is the income from continuing operations to be reported on the income statement for the year? Tax rate is 20%.
a. $2.7 million
b. $10.05 million
c. $8.3 million
d. $9.8 million
e. $9.5 million
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