Atlantic Airlines operated both an airline and several motels located near airports. During the year just ended, all motel operations were discontinued and the following operating results were reported:
Continuing operations(airline):
- Net Sales $57,000,000
- Costs and expenses (including income taxes on continuing operations) $43,300,000
Other data:
- Operating income from motels (net of income tax) $820,000
- Gain on sale of motels (net of income tax) $4,956,000
- Extraordinary loss (net of income tax benefit) $3,360,000
The extraordinary loss resulted from the destruction of an airliner by an earthquake. Atlantic Airlines had 1,000,000 shares of capital stock outstanding throughout the year.