Reference no: EM132508851

Point 1: EFG Company determined in Y1 to sell a component of its business. The sale is expected to occur on January 31, Y2. At the Y1 balance sheet date, the book value of the component was $350,000 and the fair value less costs to sell was estimated to be $268,000. The component had Y1 pre-tax operating income of $54,000 and Y2 pre-tax operating loss of ($18,000). On January 31, Y2, the actual selling price of the component less costs to sell was $275,000. In all years, EFG has a 20% tax rate.

Question 1: What is total net income/(loss) from discontinued operations shown on the Y2 income statement?

(74,400)

(8,800)

(39,000)

(93,000)