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Business, 19.08.2020 20:01 raishagibson

A company decided to sell an unprofitable division of its business. The company can sell the entire operation for $800,000, and the buyer will assume all assets and liabilities of the operations. The tax rate is 30%. The assets and liabilities of the discontinued operation are as follows: Buildings $5,000,000
Accumulated depreciation 3,000,000
Mortgage on buildings 1,100,000
Inventory 500,000
Accounts payable 600,000
Accounts receivable 200,000

What is the after-tax net loss on the disposal of the division?
a. $140,000
b. $2,200,000
C. $200,000
d. $1,540,000

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