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What would l-mart report in its income statement

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Question - On September 1, 2019, LMart enters into a tentative agreement to sell the assets of its office equipment division. This division qualifies as a component of the entity according to GAAP regarding discontinued operations. The division's contribution to LMart's operating income for 2013 was a $3 million loss before taxes. Jacob has an average tax rate of 40%.

Required - Assume that LMart sold the division's assets on December 31, 2019, for $19 million. The book value of the division's assets was $24 million at that date.

Under these assumptions, what would LMart report in its 2019 income statement regarding the office equipment division?

Explain where this information would be presented and show all work to receive full credit.

Reference no: EM133099488

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