Cozaic, an Internet software development company, produces software of two types. One type of software delivers video via the Internet. The other software consists of network administration tools. Cozaic has sold all of the network administration software to another company with the intention of focusing solely on video delivery applications. Total revenues from the software sales have been split approximately even over the past few years. The controller for Cozaic plans to report the sale of the network administration software as a disposal of a segment of the business on the current year’s statement of income.

Prepare a brief analysis of the major issue or issues in cases.

For each issue identified in case, clearly indicate an acceptable proposed solution.