[ErinKNikky]

I was recently hospitalized for 2 weeks and missed class. I am working on a problem and have found that I really need help! Here are the problems:

Requirement A:

On August 31, 2009, the end of the fiscal year, Bogey Enterprises completed the sale of one of its business segments for $20 million. The segment qualifies as a component of the entity according to SFAS No. 144. The book value of the assets of the segment was $16,000,000. The operating loss of the segment during the fiscal year was $5.6 million. Pretax income from continuing operations for the year totaled $7.8 million. The income tax rate is 30%. Prepare the lower portion of the fiscal year ended 8/31/09 income statement beginning with pretax income from continuing operations. Ignore EPS
disclosures.

I would love to know if the answer I got was right... I got a final net income of $4,340,000
Could anyone let me know how to do this... if I am right... or what I need to do?

Requirement B:
Refer to the situation in Requirement A that Bogey’s business segment was not sold during the fiscal year ended 8/31/09, but was held for sale at fiscal year-end. Assume instead that the estimated fair value of the segment’s assets, less costs to sell, on August 31, 2009 was $14,000,000. Prepare the lower portion of the fiscal year ended 8/31/09 income statement beginning with pretax income from continuing operations. Ignore EPS disclosures.

Lost on this one as well... I could not even figure out how this really changed.

Thanks for the help!

[Cedarln2265]

The best way to solve a problem (or so I've been told) is to write the main points down in the shortest way. For example:
Date: August 31, 2009 Fiscal Year End
Sale: Segment of Bogey Enterprises
Amount of Sale: $20,000,00.00
(and rest of problem)
You could try this and see if it helps you solve the problem. Good luck