QUESTION 3 14 pc On September 1, 2021, Jacob Furniture Mart enters into a tentative agreement to sell the assets of its Office Furniture division. This division qualifies as a component of the entity according to GAAP regarding discontinued operations. The division's contribution to Jacob's operating income for 2021 was a $3 million loss before income tax. Jacob has an average tax rate of 25%. Consider independently the appropriate accounting by Jacob under the three scenarios below. Please clearly label your answer for each scenario. Scenario 1: Assume that Jacob sold the division's assets on December 31, 2021, for $24 million. The book value of the division's assets was $19 million at that date. In this scenario, what would Jacob report in its 2021 income statement regarding the Office Furniture division? Explain where this information would be presented. Scenario 2: Assume that Jacob had not yet sold the division's assets by the end of 2021. Further, assume that the fair value less cost to sell of the division's assets at December 31, 2021, was $24 million and was expected to remain the same when the assets are sold in 2022. The book value of the division's assets was $19 million at the end of 2021. In this scenario, what would Jacob report in its 2021 income statement regarding the Office Furniture division? Explain where this information would be presented. Scenario 3: Assume that Jacob had not yet sold the Office Furniture division by the end of 2021. Further, assume that the fair value less cost to sell of the division's assets at December 31, 2021, was $12 million and was expected to remain the same when the assets are sold in 2022. The book value of the division's assets was $19 million at the end of 2021. In this scenario, what would Jacob report in its 2021 income statement regarding the Office Furniture division? Explain where this information would be presented