On june 30, cheyenne corp. discontinued its operations in mexico. on september 1, cheyenne disposed of the mexico facility at a pretax loss of $625,000. the applicable tax rate is 28%. show the discontinued operations section of cheyenne’s statement of comprehensive income.

net loss is : 450,000

tax = 625,000* 28%= 175,000

Explanation:

discontinued operation: in this case , gain or loss always be shown net of taxes in the income statement

total loss = 625,000

net taxes = 175,000

net loss= 625,000-175,000= 450,000

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