On November 1, 2015, management of Flop Corporation committed to a plan to dispose of Flip Company, a major subsidiary.

On November 1, 2015, management of Flop Corporation committed to a plan to dispose of Flip Company, a major subsidiary. Thedisposal meets the requirements for classification as discontinued operations. The carrying value of Flip Company was $8,000,000and management estimated the fair value less costs to sell to be $6,500,000. For 2015, Flip Company had a loss of $200,000. Howmuch should Flop Corporation present as loss from discontinued operations before the effect of taxes in its income statement for2015?

2. On January 1, 2014, Flop Co. purchased a patent for $714,000. The patent is being amortized over its remaining legal life of fifteenyears expiring on December 31, 2028. During 2016, Flop determined that the economic benefits of the patent would not lastlonger than ten years from the date of acquisition. Prepare any required general journal adjusting entries (without explanation) for the Flop Co. for the 2016. If no entry is required then identify this fact in the journal.