The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2013 and 2012: On October 15, 2013, Jackson entered into a tentative agreement to sell the assets of one of its divisions. T division comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The division was sold on December 31,2013 , for $5,000,00 Book value of the division's assets was $4,400,000. The division's contribution to Jackson's before-tax incom from operations for each year was as follows: Assume an income tax rate of 20%. Required: 1. Prepare revised income statements according to IFRS, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. 2. Assume that by December 31, 2013, 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 $5,000,000. How would the presentation of discontinued operations be different from your answer to requirement 1 ? 3. Assume that by December 31, 2013, 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 $3,900,000. How would the presentation of discontinued operations be different from your answer to requirement 1 ? The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2013 and 2012: On October 15, 2013, Jackson entered into a tentative agreement to sell the assets of one of its divisions. T division comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The division was sold on December 31,2013 , for $5,000,00 Book value of the division's assets was $4,400,000. The division's contribution to Jackson's before-tax incom from operations for each year was as follows: Assume an income tax rate of 20%. Required: 1. Prepare revised income statements according to IFRS, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. 2. Assume that by December 31, 2013, 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 $5,000,000. How would the presentation of discontinued operations be different from your answer to requirement 1 ? 3. Assume that by December 31, 2013, 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 $3,900,000. How would the presentation of discontinued operations be different from your answer to requirement 1
