P 42 Discontinued operations 104-4 The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2021 and 2020 2021 2020 Sales revenue $15,000,000 $9,600,000 Cost of goods sold 9,200,000 5,000,000 Gross profit 5,800,000 3,600,000 Operating expenses 3,200,000 2,600,000 Operating income 2,500,000 1,000,000 Gain on sale of division 600,000 3.200,000 1,000,000 Income tax expense 800,000 250,000 Net Income $ 2.400,000$750,000 On October 15, 2021. Jackson entered into a tentative agreement to sell the assets of one of its division. The division qualities as a component of an entity defined by GAP The division was sold on December 31, 2021. for 55.000.000. Book value of the division's awes was $4,000,000. The divisions contribution to become before tax for each year was as follows: 2021 $400,000 2020 $300.000 Assume income tax rate of 25 Required: 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income toes. Ignore EPS disclosures 2 Assume that by December 31, 2021, the division had not yet been sold but was considered held for sale. The fair value of the division's sets on December was $5,000,000. What would be the amount presented for discontinued operations? 3. Assume that by December 31, 2021, the division had not yet been sold but was considered held for sale. The fair value of the divisions assets on December was 53.900,000: What would be the amount presented for discontinued operations? DEM