Question #2 Today is January 3, 2021. On December 31, 2020, the board of directors of Mellew Limited ("Mellew"), a company using IFRS, approved a plan to sell the company's clothing division. The clothing division meets the definition of a component of Mellew, and the assets and liabilities of the clothing division meet the criteria of "held for sale." The company reviewed the property, plant and equipment associated with the clothing division and determined that their fair value less costs to sell is $108 million compared to a net book value of $125 million. As well, future losses of $32 million are expected to be incurred in fulfilling the contract obligations up to November 30, 2021, after which time an actual disposal is expected to occur. The clothing division had incurred before-tax operating losses of $62 million in 2020 and $50 million in 2019. In addition, during 2019, the company's management sold a parcel of land near the corporate head office. The land was sold for $160 million and had a carrying value of $150 million. Assume that earnings from all other sources were part of "Operating Income" (before income tax) and they amounted to $339 million in 2019 and $170 million in 2020. These foregoing amounts do not include any amounts pertaining to the clothing division, which is a discontinued operation, nor does it include the transaction pertaining to the sale of land, which is non-Operating income. Separately, in 2019, Mellew incurred $6 million of other comprehensive loss before income taxes. This other comprehensive loss relates to certain investments that the company holds and records at fair value. The applicable tax rate is Mellew's average income tax rate of 30%. Required: (a) Fill-in the blanks: In order for assets and liabilities to be recognized as "held for sale," certain criteria must be met. The important criteria are: 1. the assets and liabilities are available for sale, and 2. the sale is highly (b) Compute the gain/loss on the sale of the land. Comment on whether this gain/loss is a realized" gain/loss or an "unrealized" gain/loss. (c) Prepare the comprehensive income statement for Mellew for 2020, beginning with "Operating Income" (i.e. the $339 million and the $170 million above). Also show the comparative amounts for 2019. Your first column of amounts should be 2020 and the second column should be 2019. Ignore earnings per share computations