On October 5, 2020, Diamond in the Novak Recruiting Group Inc.s board of directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately 76% 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 $87,920 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 $4,620 (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 Novak 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 Novak Recruiting Group Inc. Partial Income Statement December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020
Applicable Income Tax RecoveryDiscontinued operationsIncome from Operations of the Discontinued Blue Division, less Applicable Income TaxApplicable Income TaxNet Income / (Loss)Income Tax ExpenseIncome from Continuing Operations before Income TaxIncome from Continuing OperationsLoss from impairment of assets of Discontinued operations, less Applicable Income Tax Recovery				$
Applicable Income Tax Recovery Loss from impairment of assets of Discontinued operations, less Applicable Income Tax Recovery Net Income / (Loss) Discontinued operations Income from Continuing Operations before Income Tax Income Tax Expense Income from Continuing Operations Income from Operations of the Discontinued Blue Division, less Applicable Income Tax Applicable Income Tax
Applicable Income Tax RecoveryIncome from Operations of the Discontinued Blue Division, less Applicable Income TaxIncome from Continuing OperationsApplicable Income TaxNet Income / (Loss)Discontinued operationsIncome from Continuing Operations before Income TaxLoss from impairment of assets of Discontinued operations, less Applicable Income Tax RecoveryIncome Tax Expense
Applicable Income Tax RecoveryIncome from Continuing OperationsDiscontinued operationsApplicable Income TaxNet Income / (Loss)Loss from impairment of assets of Discontinued operations, less Applicable Income Tax RecoveryIncome Tax ExpenseIncome from Continuing Operations before Income TaxIncome from Operations of the Discontinued Blue Division, less Applicable Income Tax
Loss from impairment of assets of Discontinued operations, less Applicable Income Tax RecoveryIncome Tax ExpenseIncome from Operations of the Discontinued Blue Division, less Applicable Income TaxApplicable Income TaxIncome from Continuing OperationsApplicable Income Tax RecoveryNet Income / (Loss)Income from Continuing Operations before Income TaxDiscontinued operations		$
Income Tax ExpenseIncome from Operations of the Discontinued Blue Division, less Applicable Income TaxApplicable Income Tax RecoveryIncome from Continuing OperationsDiscontinued operationsApplicable Income TaxLoss from impairment of assets of Discontinued operations, less Applicable Income Tax RecoveryNet Income / (Loss)Income from Continuing Operations before Income Tax
Discontinued operationsIncome from Continuing Operations before Income TaxIncome Tax ExpenseIncome from Operations of the Discontinued Blue Division, less Applicable Income TaxApplicable Income TaxLoss from impairment of assets of Discontinued operations, less Applicable Income Tax RecoveryApplicable Income Tax RecoveryNet Income / (Loss)Income from Continuing Operations				$