The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2018 and 2017 2018 2017 Sales Cost of goods sold Gross profit Operating expenses Operating income Gain on sale of division $15,800,000 $10,400,000 9,600 0006,400 000 6,200,000 4,000,000 3,520,000 ,920,000 2,680,000 1,080,000 680,000 3,360,000 ,080,000 432,000 2,016,000648,000 Income tax expense Net income ,344,000 On October 15, 2018, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as component of an entity as defined by GAAP. The division was sold on December 31, 2018, for $5,240,000. Book value of the di assets was $4,560,000. The division's contribution to Jackson's operating income before-tax for each year was as follows: f vision's 2018 $440,000 2017 $340,000 Assume an income tax rate of 40%. Required: (In each case, net any gain or loss on sale of division with annual income or loss from the division and show effect on a separate line) 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income fr operations before income taxes. Ignore EPS disclosures. 2. Assume that by December 31. 2018, the division had not yet been sold but was considered held for sale. The fair value of the division's assets on December 31 was $5,240,000. Prepare revised income statements according to general principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures 3. Assume that by December 31, 2018, the division had not yet been sold but was considered held for sale. The fair value of the division's assets on December 31 was $3,980,000.Prepare revised i principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. ncome statements according to generally accepted accounting Answer is not complete. Complete this question by entering your answers in the tabs below. 6 Required 1 Required 2 Required 3 Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) JACKSON HOLDING COMPANY Comparative Income Statements (in part) For the Years Ended December 31 2017 2018 Income from continuing operations before income taxes Income tax benefit (expense) 2,680,000 S 1,080,000 (1.072.000)(432,000) Income from continuing operations Discontinued operations gain (loss): 1,608,000 48,000 Income (loss) from operations of discontinued component Income (loss) on discontinued operations S 1,608,000 S1,608,000 S 648,000 Required 2> Required 1 Required 2 Required 3 Assume that by December 31, 2018, the division had not yet been sold but was considered held for sale. The fair value of the division's assets on December 31 was $5,240,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) Show less JACKSON HOLDING COMPANY Comparative Income Statements (in part) For the Years Ended December 31 2018 2017 Income from continuing operations before income taxes Income from continuing operations Discontinued operations gain (loss): Income (loss) on discontinued operations Required 1 Required 3> Required 1Required 2Required 3 Assume that by December 31, 2018, the division had not yet been sold but was considered held for sale. The fair value of (Amounts to be deducted should be indicated with a minus sign.) division's assets on December 31 was $3,980,000. Prepare revised income statements according to g accounting principles, beginning with income from continuing operations before income taxe Show less A JACKSON HOLDING COMPANY Comparative Income Statements (in part) For the Years Ended December 31 2018 2017 Income from continuing operations before income taxes 0 Income from continuing operations Discontinued operations gain (loss) Income (loss) on discontinued operations Required 2 Required 3