The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The book value of the assets of the Segment was $15 million. The loss from operations of the segment during 2018 was $3.90 million. Pretax income from continuing operations for the year totaled $5.80 million. The income tax rate is 30%. Assume that the semiconductor segment was not sold during 2018 but was held for sale at year-end. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $14 million.

Prepare the lower portion of the 2018 income statement beginning with pretax income from continuing operations. Ignore EPS disclosures.

Income statement for the year ended 2018

Pretax Income from continuing operations                             $5.80 million

Loss from discontinued operations                                        -$3.90 million

Pretax Net income                                                                    $1.90 million

Tax Expense (1.90 million * 30%)                                            -$0.57 million

Profit for the year                                                                      $1.33 million

Add Other Comprehensive income                                       -$0.7 million

AfterTax fair value loss from Asset held for sale= -$0.7 million

Total Comprehensive incomes                                               $0.63 million

Explanation:

gain (loss) from Asset held for sale = Fair value - book vale

                                                          =$14 million - $15 million

                                                          =-$1 million * 70% = $0.7 million After tax

The Fair Value loss is after tax meaning deferred tax has been accounted for and taken out so that the comprehensive incomes going to Retained income be after tax.

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