A company has decided to discontinue a component of its business but, when the reporting period ends, the component has not yet been sold. The amount that the company would report as income from discontinued operations is (ignore tax effects):

The amount by which the component's fair value less cost to sell is less than book value and income from operations for the year

Explanation:

Fair value less cost to sell (FVLCS) is the measurement of the value of the ‘net’ economic benefits embedded in a fixed asset that can be one in a case where the asset is been sold. Just like the name refers, it equals the fair value minus the costs that the company will incur in selling the asset such as irrecoverable taxes, delivery and transportation cost , transaction costs and so on. The fair value of the asset is the amount which can be sold to a knowledgeable and willing buyer in an arm’s length of the transaction.

income from operations for the year and the amount by which the component's fair value less cost to sell is less than book value

Explanation: In instances where a component is discontinued but is not sold at the end of the accounting or reporting period, income from operations for the year and the amount by which the component's fair value less cost to sell is less than book value. This is the amount the company would report as income from discontinued operations. The net-of-tax income effects of a discontinued operation is disclosed separately in the income statement.