Answer:
losses from discontinued operations 395,000
Explanation:
From 1/1/20X1 to 8/31/20X1 <u>realized </u>loss 300,000
From 9/1/20X1 to 12/31/20X1 <u>realized </u>loss 200,00
<em><u>EXPECTED </u></em>Profit from 1/1/20X2 to 3/31/20X2 400,000
As the accounting carries the accrued principles Revsine's expectations aer not accrued thus, do not included until realized.
The company has losses for 500,000 with a tax-rate of 21%
This generates a tax-shield of 105,000
net of taxes: 500,000 - 105,000 = 395,000
