Kandon Enterprises, Incorporated, has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and, on November $15,2024,$ Kandon adopted a formal plan to sell the division. The sale was completed on April $30,2025.$ At December $31,2024,$ the component was considered held for sale. Consider the following:

On December $31,2024,$ the company$$s fiscal year$-$end, the book value of the assets of the horse division was $$405,000.$ On that date, the fair value of the assets, less costs to sell, was $$350,000.$

The before$-$tax loss from operations of the division for the year was $$290,000.$

The after$-$tax income from continuing operations for $2024$ was $$550,000.$

The company$$s effective tax rate is $25\%.$

Required:

Prepare a partial income statement for $2024$ beginning with income from continuing operations. Ignore EPS disclosures.

Prepare a partial income statement for $2024$ beginning with income from continuing operations. Assume that the estimated net fair value of the horse division$$s assets was $$700,000,$ instead of $$350,000.$ Ignore EPS disclosures.