On November 15,2012,Jacobs Co

question 43

Essay

On November 15,2012,Jacobs Co.sold a segment of its business for $2,750,000.The net book value of the segment at the time of its disposal was $3,000,000.Jacobs had pretax operating income of $1,750,000 for 2012 which included $380,000 earned by the discontinued segment prior to its disposal.Assume Jacobs' tax rate is 30%.
Required:
Prepare a partial income statement for Jacobs Co.beginning with pretax income from continuing operations. 

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Definitions:

Constructive Dismissal

Unilaterally demoting or changing the duties of an employee, contrary to what was agreed to in the employment contract; conduct that essentially terminates a pre-existing contractual relationship, which could be treated as dismissal.

Employment Law

The branch of law that deals with the rights and duties between employers and workers.

Independent Contractor

A person or entity contracted to perform work for—yet not employed by—another entity, retaining control over how the work is executed.

Essential Part

A component or aspect of something that is fundamental to its function, nature, or structure.