Salamander Inc. is a food processing company that operates divisions in three major lines of food products: cereals, frozen fish, and candy. On 13 September 20X1, the board of directors voted to put the candy division up for sale. The candy divisions operating results had been declining for the past several years due to intense competition from large international players such as Nestl and Cadbury.

The board hired the consulting firm Atelier LLP to conduct a search for potential buyers. The consulting fee was to be 5% of the value of any sale transaction.

By 31 December 20X1, Atelier had found a highly interested buyer for the candy division, and serious negotiations were underway. The buyer was a food conglomerate based in Brazil; it offered $4.5 million cash.

On 25 February 20X2, after further negotiations, the Salamanders board accepted an enhanced Brazilian offer to buy the division for $4.7 million. The Salamander shareholders approved the sale on 5 March 20X2. The transfer of ownership took place on 31 March 20X2.

Salamanders income tax rate is 20%. Other information is as follows (before tax, in thousands of dollars):

	13 September 20X1		31 December 20X1
	Book Value	Fair Value	Fair Value
Candy divisions net assets:
Current assets	$ 910	$ 820	$ 740
Property, plant, and equipment (net)	4,400	3,200	3,400
Current liabilities	(900)	(900)	(900)
	$ 4,410	$3,120	$3,240
Net earnings (loss) of the candy division, net of tax:
13 September to 31 December 20X1			450
1 January to 31 March 20X2			(560)

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Required:

Prepare whatever journal entries are appropriate at 13 September 20X1, 31 December 20X1, 25 February 20X2, 5 March 20X2, and 31 March 20X2.

Assume that the after-tax earnings from continuing operations amounted to $5 million in 20X1. Prepare the lower section of the earnings section of the 20X1 SCI (in thousands of dollars).