MIWVU lol yet been recorded. Required Prepare a multiple-step income statement for the Reed Company for 2018, 2017 in format, including income taxes computed at 40 percent and EPS assuming showing information comparative disclosures 300,000 shares stock. of common The following condensed income statements of the Jackson Holding Company are presented for the two years 4-2 scontinued erations 2018 Sales 2017 Cost of goods sold Gross profit Operating expenses $15,000,000 9,200,000 $9,600,000 6,000,000 3,600,000 2,600,000 Operating income Gain on sale of division 5,800,000 3,200,000 2,600,000 600,000 1,000,000 Income tax expense 3,200,000 1,000,000 1,280,000 Net income 00,000 $ 1,920,000 $ 600,000 On , 2018, Jackson entered into a tentative agreement to sell the assets of one of its divisions. October 15 The division qualifies as component of an entity as defined by GAAP. The division was sold on December 31 , 20185,000,. , for $000Book value of the division's assets was $4,400,000. The division's contribution to Jack sonoperating 's income before-tax for each year was as follows: 2018 2017 $400,000 00,000 Assume an income tax rate of 40 percent Required 1income statements according accepted principles, beginning with . Prepare revised to generally accounting income from continuing operations before taxes. Ignore EPS disclosures income . 2. Assume that by December 31, 2018, the division had not yet been sold but was considered held for sale. The fair value of the divisions assets on December 31 was s5,000,000. What would be the amount presented for discontinued operations? 3. Assume that by December 31, 2018, the division had not yet been sold but was considered held for sale. The fair value of the divisions assets on December 31 was $3900,000. What would be the amount presented for discontinued operations