3. Originally, at the end of the first quarter, the company estimated pretax income for the balance of the year of $60,000. 4. During the second quarter, the company decided to discontinue an...

3. Originally, at the end of the first quarter, the company estimated pretax income for the balance of the year of $60,000.

4. During the second quarter, the company decided to discontinue an operation. Originally, in quarter 1, the operation had reported losses of $30,000 and projected losses for the balance of 2014 in the amount of $40,000. During quarter 2, the discontinued operation reported operating losses of $60,000 and realized losses on the disposal of assets of $25,000. Although not yet realized, the operation anticipated that assets to be sold in the future would net $30,000 less than their book value (carrying value) as reported at the end of quarter 2, 2014.