On October 1, 2016, Croatan Corporation Finalized Its Plans to Discontinue

question 80

Essay

On October 1, 2016, Croatan Corporation finalized its plans to discontinue operations of its retail component. The plan calls for the sale of the retail operations to another company for $700,000 current fair value) on April l, 2017. The current book value of the assets is $800,000. For the first nine months of 2016, the component incurred a pretax operating income of $60,000. During the last quarter of 2016, the pretax income was $10,000, while the expected pretax income for the first quarter in 2017 is expected to be $20,000. Croatan is subject to a 30% income tax rate.
Required:
Prepare the results from discontinued operations section of Croatan's income statement for 2016, using good format. Show all computations.

Comprehend the impact of a family's entrepreneurial activity on innovation and transformational change.

Identify the mechanisms of family corporate venturing and its relevance to enterprising families.

Recognize the importance of effective communication and mentoring in building a successful enterprising family.

Understand the process of building long-term value across generations in family businesses.

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Definitions:

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in decision making, social behavior, and personality expression.

Amygdala

A region of the brain involved in experiencing emotions, especially those related to survival, such as fear and aggression.

Hypothalamus

A region of the brain below the thalamus, responsible for coordinating both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Dorsal Anterior Cingulate Cortex

A region of the brain involved in cognitive functions, including decision making, impulse control, emotion, and anticipation of reward, often linked to the regulation of physical and emotional pain.