On October 5, 2020, Diamond in the Grouper Recruiting Group Inc.s board of directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately 79% of its income from its human resources management practice. The Blue Division gets contracts to perform human resources management on an outsourced basis. The board decided to dispose of the division because of unfavourable operating results. Net income for Diamond was $91,140 for the fiscal year ended December 31, 2020 (after a charge for tax at 30% and after a writedown for the Blue assets). Income from operations of the Blue Division accounted for $4,340 (after tax) of this amount. Because of the unfavourable results and the extreme competition, the board believes that it cannot sell the business intact. Its final decision is to auction off the office equipment. The equipment is the divisions only asset and has a carrying value of $27,000 at October 5, 2020. The board believes that proceeds from the sale will be approximately $5,000 after the auction expenses. Currently, the equipments estimated fair value is $8,000. The Blue Division qualifies for treatment as a discontinued operation. Diamond prepares financial statements in accordance with ASPE. (a) Prepare a partial income statement for Diamond in the Grouper Recruiting Group. The income statement should begin with income from continuing operations before income tax. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Diamond in the Grouper Recruiting Group Inc. Partial Income Statement For the Month Ended December 31, 2020For the Year Ended December 31, 2020December 31, 2020
Discontinued operationsApplicable Income Tax RecoveryNet Income / (Loss)Income from Operations of the Discontinued Blue Division, less Applicable Income TaxApplicable Income TaxIncome from Continuing OperationsIncome from Continuing Operations before Income TaxLoss from impairment of assets of Discontinued operations, less Applicable Income Tax RecoveryIncome Tax Expense				$
Income from Operations of the Discontinued Blue Division, less Applicable Income TaxLoss from impairment of assets of Discontinued operations, less Applicable Income Tax RecoveryIncome from Continuing Operations before Income TaxIncome Tax ExpenseDiscontinued operationsNet Income / (Loss)Applicable Income TaxIncome from Continuing OperationsApplicable Income Tax Recovery
Discontinued operationsApplicable Income TaxIncome from Continuing Operations before Income TaxIncome Tax ExpenseApplicable Income Tax RecoveryNet Income / (Loss)Loss from impairment of assets of Discontinued operations, less Applicable Income Tax RecoveryIncome from Operations of the Discontinued Blue Division, less Applicable Income TaxIncome from Continuing Operations
Income from Continuing OperationsIncome Tax ExpenseDiscontinued operationsApplicable Income TaxApplicable Income Tax RecoveryIncome from Operations of the Discontinued Blue Division, less Applicable Income TaxIncome from Continuing Operations before Income TaxNet Income / (Loss)Loss from impairment of assets of Discontinued operations, less Applicable Income Tax Recovery
Discontinued operationsIncome from Operations of the Discontinued Blue Division, less Applicable Income TaxNet Income / (Loss)Loss from impairment of assets of Discontinued operations, less Applicable Income Tax RecoveryApplicable Income Tax RecoveryIncome Tax ExpenseIncome from Continuing Operations before Income TaxIncome from Continuing OperationsApplicable Income Tax		$
Income from Operations of the Discontinued Blue Division, less Applicable Income TaxApplicable Income TaxIncome from Continuing Operations before Income TaxApplicable Income Tax RecoveryIncome Tax ExpenseDiscontinued operationsIncome from Continuing OperationsNet Income / (Loss)Loss from impairment of assets of Discontinued operations, less Applicable Income Tax Recovery
Applicable Income TaxIncome from Continuing OperationsIncome Tax ExpenseNet Income / (Loss)Discontinued operationsIncome from Continuing Operations before Income TaxApplicable Income Tax RecoveryIncome from Operations of the Discontinued Blue Division, less Applicable Income TaxLoss from impairment of assets of Discontinued operations, less Applicable Income Tax Recovery				$