Lloyd: Janet is right, after much soul searching we made the decision to sell our renovation division. The board of directors approved the sale process at the end of July 2021 at their monthly meeting and the division was ready to be sold as of that date. After moving so significantly into multi-family construction the renovation division occupies an amount of management resources that cannot be justified for the thin margins. We are also having difficulty collecting some of our receivables from customers of our renovation division which was the final nail in the coffin. Heres a document with information on that division you may find helpful (Appendix I). After making a few phone calls to our contacts, we believe that weve found a buyer for the division. Its a renovation company from Alberta that wishes to expand into the Okanagan Valley. Theyre looking to have the acquisition done by the beginning of summer 2022. Because we want the division gone, were not necessarily looking to maximize the potential return for the assets and operations.

How will the discounted operations will affect income statement, balance sheet. show the the calculations

WC Renovation Division Income Statement Accounts Revenue (2,778,475) Cost of goods sold 1,861,578 Salaries and wages 889,112 Insurance 22,000 Bad debts Depreciation 18,619 Repairs and maintenance 15,693 Office expense 2,500 Balance Sheet Accounts Accounts receivable Equipment A/D - Equipment 162,550.00 93,095.00 (61,570.00)