Halfway through this problem and I'm stuck. Not sure what I'm doing wrong as the online answers are saying it is incorrect.

		2021			2020
Sales revenue	$	15,500,000		$	10,100,000
Cost of goods sold		9,450,000			6,250,000
Gross profit		6,050,000			3,850,000
Operating expenses		3,400,000			2,800,000
Operating income		2,650,000			1,050,000
Gain on sale of division		650,000
		3,300,000			1,050,000
Income tax expense		825,000			262,500
Net income	$	2,475,000		$	787,500

On October 15, 2021, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as a component of an entity as defined by GAAP. The division was sold on December 31, 2021, for $5,150,000. Book value of the divisions assets was $4,500,000. The divisions contribution to Jacksons operating income before-tax for each year was as follows:

2021	$425,000
2020	$325,000

Assume an income tax rate of 25%. Required: (In each case, net any gain or loss on sale of division with annual income or loss from the division and show the tax effect on a separate line.) 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. 2. Assume that by December 31, 2021, the division had not yet been sold but was considered held for sale. The fair value of the divisions assets on December 31 was $5,150,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. 3. Assume that by December 31, 2021, the division had not yet been sold but was considered held for sale. The fair value of the divisions assets on December 31 was $3,950,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.

Required 1 Required 2 Required 3 Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) JACKSON HOLDING COMPANY Comparative Income Statements (in part) For the Years Ended December 31 2021 Income from continuing operations before income taxes $ 2,225,000 $ Income tax benefit (expense) (556,250) 2020 725,000 (181,250) 1,668,750 543,750 Income from continuing operations Discontinued operations gain (loss) Income (loss) from operations of discontinued component Income tax benefit (expense) Income from discontinued operations Net income 0 0 $ 1,668,750 $ 543,750 Required 1 Required 2 > Required 1 Required 2 Required 3 Assume that by December 31, 2021, the division had not yet been sold but was considered held for sale. The fair value of the division's assets on December 31 was $5,150,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) Show less JACKSON HOLDING COMPANY Comparative Income Statements (in part) For the Years Ended December 31 2021 Income from continuing operations before income taxes 2020 0 0 Income from continuing operations Discontinued operations gain (loss): 0 Income from discontinued operations Net income 0 0 $ $ 0 Roquirad 1 Domurod 2 Required 1 Required 2 Required 3 Assume that by December 31, 2021, the division had not yet been sold but was considered held for sale. The fair value of the division's assets on December 31 was $3,950,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) Show less JACKSON HOLDING COMPANY Comparative Income Statements (in part) For the Years Ended December 31 2021 Income from continuing operations before income taxes 2020 0 0 Income from continuing operations Discontinued operations gain (loss): 0 0 Income from discontinued operations Net income $ 0 $ 0