Chance Company had two operating divisions, one manufacturing
farm equipment and the other office supplies. Both divisions are
considered separate components as defined by generally accepted
accounting principles. The farm equipment component had been
unprofitable, and on September 1, 2021, the company adopted a plan
to sell the assets of the division. The actual sale was completed
on December 15, 2021, at a price of $630,000. The book value of the
division’s assets was $1,070,000, resulting in a before-tax loss...