4.Venus Corporation approved a formal plan to sell its manufacturing division,...

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EricR

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...considered a business segment,? on July 1, 2006. The sale will occur in March of 2007. The division had an operating loss of $1,200,000 for the six months ended December 31, 2006, & expects to incur a loss of $400,000 for the first quarter of 2007. The sale price is $46,000,000, & the carrying value at the date of sale should be $37,000,000. Venus' effective tax rate for 2006 & 2007 is 30%. For the year ended December 31, 2006, how much gain should Venus report on disposal of the manufacturing division?

A.$0
B.$5,180,000
C.$6,300,000
D.$9,000,000
 
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