Q). During 2011 Comet Cares Inc. decided to sell an unprofitable segment of it

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    Q). During 2011 Comet Cares Inc. decided to sell an unprofitable segment of its business. The sale of this segment qualifies as a discontinued operation for
    financial reporting purposes. However at the end of 2011 Comet had yet to sell the segment. On December 31 2011 the segment assets had a fair value minus
    anticipated costs to sell of $3500000 and a book value of $3700000. For the year the segment reported an operating loss of $500000. In January of 2012
    Comet Cares sold the segment for $3600000. Operating losses in the first month of 2012 amounted to $45000. Assume a 40% tax rate in both 2011 and 2012.

    a) What is the after-tax dollar value impact of the discontinued operation on 2011 Net Income (use ( ) for a decrease)?

    $_________________________________

    b) What is the after-tax dollar value impact of the discontinued operation on 2012 Net Income (use ( ) for a decrease)?

    $__________________________________

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