PROBLEM $6-3$ Discontinued Operations CHECK $2012$ Income from continuing operations, $\backslash (\backslash$$ $167\backslash )$ The unaudited income statement and balance sheet of Gourmet Foods Corporation for the years $2012$ and $2011$ are given below $($in $\backslash (\backslash$$ $\backslash )$ million$)$: BALANCE SHEET In $2012,$ Gourmet Foods sold its meat packing division for $\backslash (\backslash$$ $600\backslash )$ million in cash $($the decision to sell the unit was made on the same day$).$ On the date of sale, this division had operating assets of $\backslash (\backslash$$ $860\backslash )$ million and operating liabilities of $\backslash (\backslash$$ $300\backslash )$ million. At the end of $2011,$ operating assets and liabilities of this division were $\backslash (\backslash$$ $821\backslash )$ and $\backslash (\backslash$$ $300\backslash )$ million, respectively. The division had no debt. Its operations for $2012$ and $2011$ were as follows: The accountant of Gourmet Foods had not made any entries regarding the sale of this division. The tax accountant opined that $\backslash (35\backslash \%\backslash )$ of the gain on sale would be taxable. Required: a$.$ Gourmet Foods' auditor decides that the sale of the meat$-$packing division should be treated as a discontinued operation. Show how the income statement and balance sheet of Gourmet Foods will need to be restated to reflect this change. b$.$ Assume you were a financial analyst. How would you treat this discontinued operation?