On October 5, 2023 and in the Sheffield Recruiting Group Inc's board of directors decided to dispose of the Blue Division A formal on was approved Diamond derives aromaty 77% 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. Netford $3.870 for the scal year ended December 22.2023fter a charge for tax at 30% and after for the Buat Inc from operation of the Blue Division accounted for $4,970 Because of the unfavourable results and the extreme competition, the board beleves that it cannot sell the business intact. Its ffdecision is to auction off the office equipment. The equipment is the vision's only asset and has a carrying of $24,000 October 5, 2012 The board believes that proceeds from the sale will be apprimately $6.000 after the auction expenses Currently the equipment's estimated fair value is $900. The Blue Division qualifies for treatment as a continued operation Diamond prefects in accordance with ASPE Preprint for Dumond in the Sheffield Recruiting Group. The income statement should begin with ice from continuing perations before incom Diamond in the Sheffield Recruiting Group Para come Statement 10000 18000 107000 7630 On October 5, 2023, Diamond in the Sheffield Recruiting Group Inc's board of directors decided to dispose of the Blue Division. A formal plan was approved Diamond derives approximately 77% of its income from its human resources management practice. The Be 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 Nome for Diamond was $93.870 for the fiscal year ended December 31, 2023 after a charge for tax at 30% and after a writedown for the Bearsets Income from operations of the Blue Division accounted for 54970erad 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 division's only asset and has a carrying value of $24.000 a October 5, 2023. The board believes that proceeds from the sale will be approximately $6,000 after the auction expenses Currently, the equipments estimated fair value is $900 The Blue Division qualifies for treatment as a discontinued operation Diamond prepares francial statements in adance with ASPE M Prepare a partial income statement for Diamond in the Shefeld Recruiting Group. The income statement should begin with income from continuing speration before in Diamond in the Sheffield Recruiting Group Inc. Partial Income Statement 100 00 N 345000 On October 5, 2023, Diamond in the Sheffield Recruiting Group Inc.'s board of directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately 77% 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 $93,870 for the fiscal year ended December 31, 2023 (after a charge for tax at 30% and after a writedown for the Blue assets). Income from operations of the Blue Division accounted for $4,970 (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 division's only asset and has a carrying value of $24,000 at October 5, 2023. The board believes that proceeds from the sale will be approximately $6,000 after the auction expenses. Currently. the equipment's estimated fair value is $9,600. 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 Sheffield Recruiting Group. The income statement should begin with income from continuing operations before income tax. Prepare a partial income statement for Diamond in the Sheffield Recruiting Group. The income statement should begin with income from continuing operations before income tax. Diamond in the Sheffield Recruiting Group Inc. Income from Continuing Operations before Income Tax Income Tax Expense Income from Continuing Operations Discontinued Operations Partial Income Statement For the Year Ended December 31, 2023 145000 18000 Income from Operations of the Discontinued Blue Division, less Applicable Income Tax 38100 Loss from Impairment of Assets of Discontinued Operations. Jess Applicable Income Tax Recovery 88900 Net Income/Los 7630 93870