Play Cloth Company, a retailer of children$$s clothing, decided to dispose of its European division. The company announced the plan to sell the division on $20$ March $20$X$1.$ Once the announcement was made, management hired a professional services firm to assist with finding a buyer for the division. The firm would charge $4\mathrm{.}50\%$ commission on the sale of the division.

The European division had a carrying value of $$51,180,000$ and was listed for sale at a price of $$49,060,000.$ The sale price was determined in reference to an independent fair value appraisal.

The division earned $$5,520,000$ from $1$ July $20$X$0-19$ March $20$X$1$ and $$1,040,000$ between $20$ March $20$X$1-30$ June $20$X$1.$

Play Cloth had total earnings from continuing operations $($after tax$)$ of $$130,400,000$ for the year ended $30$ June $20$X$1.$

Play Cloth has a tax rate of $25\%.$

Required:

$1.$ Determine whether the European division qualifies as a discontinued operation.

$2.$ Calculate the total earnings $($loss$)$ for the European division.

$3.$ Prepare a partial SCI for the year ended $30$ June $20$X$1$ using the information provided.