Kimbro Concrete Companies is disposing of its blacktop

Kimbro Concrete Companies is disposing of its blacktop segment this year and is reporting it as a discontinued operation on the statement of net income in the current year. The ratio of consolidated debt to equity is uniform for all operations of the company. What is the minimum amount of interest that Kimbro Concrete can allocate to its discontinued operations? What is the maximum amount of interest that it can allocate to discontinued operations? Provide explanations of your calculations, including references to the codification.

The following information is available related to the net assets and debt of Kimbro Concrete. Interest expense for all debt is 7% of the principal balance.