On Sept. 1, Jacob Furniture Mart agreed to sell the assets of its Office Furniture Division to Albanese Inc. for $24 million. The sale was completed on December 31, 2018.

The following additional facts pertain to the transaction:

The Office Furniture Division qualifies as a component of the entity according to GAAP regarding discontinued operations.

The book value of the Divisions assets totaled $19 million on the date of the sale.

The Divisions operating loss was a pre-tax loss of $3 million in 2018.

Jacob's income tax rate is 25%.

Required:

1. In the income statement for the year ended December 31, 2018, what would Jacob Furniture Mart report as income/(loss) from discontinued operations?

2. Suppose that the Office Furniture Division's assets had not been sold by December 31, 2018, but were considered held for sale. Assume that the fair value of these assets was $24 million at December 31, 2018. In the income statement for the year ended December 31, 2018, what would Jacob Furniture Mart report as income/(loss) from discontinued operations?