Alucard Company has 2 divisions, Aye and Bee. Both qualify as business components. In 2018, the firm decided to dispose of the assets and liabilities of division Bee and it is probable that the disposal will be completed early 2019. The revenue and expenses of Alucard Company for 2018 and 2017 are as follows: 2018 2017 Sales-Aye 5,000,000 4,600,000 Total nontax expenses-Aye 4,400,000 4,100,000 Sales-Bee 3,500,000 5,100,000 Total nontax expenses-Bee 3,900,000 4,500,000 During the later part of 2018, Alucard disposed of a portion of division Bee and recognized a pretax loss of 2,000,000 on the disposal. The income tax rate is 30%. What amount of loss from discontinued operation should Alucard report in 2018?
Alucard Company has 2 divisions, Aye and Bee. Both qualify as business components. In 2018, the firm decided to
dispose of the assets and liabilities of division Bee and it is probable that the disposal will be completed early 2019. The
revenue and expenses of Alucard Company for 2018 and 2017 are as follows:
2018 2017
Sales-Aye 5,000,000 4,600,000
Total nontax expenses-Aye 4,400,000 4,100,000
Sales-Bee 3,500,000 5,100,000
Total nontax expenses-Bee 3,900,000 4,500,000
During the later part of 2018, Alucard disposed of a portion of division Bee and recognized a pretax loss of 2,000,000 on the
disposal. The income tax rate is 30%. What amount of loss from discontinued operation should Alucard report in 2018?
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