The $31$ December $20$X$2$ year$-$end trial balance for Dynamics Ltd$.,$ a private company, showed the following account balances:

Mytel Corporation owns and operates a variety of restaurants, hotels, and budget lodging. In June $20$X$8,$ the management of Mytel Corporation decided to sell off its budget lodging operations, as the rate of return on the division$$s assets was lower than management$$s internal requirements. The division is reported as its own operating segment, and does not share costs with any other division. On $20$ June $20$X$8,$ Mytel listed the budget lodging division for $$11\mathrm{.}70$ million.

Additional information relating to the budget lodging is as follows:

The budget lodging division earned $$1,194,700$ from $1$ January $20$X$8$ to $20$ June $20$X$8,$ and $$247,600$ from $20$ June $20$X$8$ to $31$ December $20$X$8($figures reported before tax$).$ The budget lodging division has an estimated fair value of $$11\mathrm{.}90$ million. The carrying value of the division is $$12\mathrm{.}40$ million.

At first, Mytel$$s management was not getting much interest in their properties and in October $20$X$9$ they decided to hire an independent consultant to help with the sale. The consultant would charge $7\mathrm{.}50\%$ of the total purchase price.

As of $31$ December $20$X$8,$ the company was in the final negotiating stages with a buyer. Mytel has a tax rate of $20\%$ and reports in accordance with IFRS.

Required:

$1.$ Determine whether the operation can be classified as a discontinued operation.

Yes

$2.$ Calculate the gain $($loss$)$ on sale for the discontinued operation for $20$X$8.$ Be sure to include gain$/$loss to date, adjustment to carrying value of assets, commissions and income taxes on profit$/$loss to date.

$3.$ Assuming the division was sold for $$12\mathrm{.}50$ million, calculate the amount to be shown in $20$X$9$ earnings. Be sure to include sale price less carrying value of assets less any additional commissions and any additional income taxes.