The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31 2021 and 2020 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Gain on sale of division 2821 2020 $15,100,000 $9,700,000 9,250,000 6,050,000 5,850,000 3,650,000 3,240,000 2,640.000 2,610,000 1,618,00 610, 3,220,000 1,01e, 290 505.000 252,500 $ 2,415,000$ 757,500 Income tax expense Net income On October 15, 2021, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as a component of an entity as defined by GAAP The division was sold on December 31, 2021. for $5,030,000 Book value of the division's assets was $4,420.000. The division's contribution to Jackson's operating income before tax for each year was as follows: 2031 2020 5405,000 5305,000 Assume an income tax rate of 25% Required: (in each case, net any gain or loss on sale of division with annual income loss from the division and show the tax effect on a separate line.) 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing Required: (In each case, net any gain or loss on sale of division with annual income or loss from the division and show the tox effect on a separate line.) 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures 2. Assume that by December 31, 2021, 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 $5,030,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. 3. Assume that by December 31, 2021, 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 $3,910,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. Complete this question by entering your answers in the tobs below. I Required: 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 2020 2021 Prev 1 of 4 Next > 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 2021 2020 Income from continuing operations before income taxes $ 2,205,000 $ 70,500 Income tax benefit (expense) 2,205,000 705,000 Income (loss) from operations of discontinued component 551,250 176.250 Income from continuing operations 4,961,250 951,750 Discontinued operations gain (loss) Income tax benefit (expense) 253,750 76,250 Income (loss) from operations of discontinued component 761,250 228.750 Income from discontinued operations 1,015.000 305.000 $ Net income 5,976,250 $ 1,256.750 Requited 1 Required 2 > Prey 1 of 4 Next > Required 1 Required 2 Required 3 Assume that by December 31, 2021, 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 $5,030,000. 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 Year Ended December 31 2021 Income from continuing operations before income taxes $ 2,205,000 s income (loss) from operations of discontinued component 2,205,000 income tax benefit (expense) 551 250 Income from continuing operations 4,961,250 Discontinued operations gain (loss) Income tax benefit (expense) 101,250 Income (loss) from operations of discontinued component 303,750 Income from discontinued operations 405.000 Net income $ 5,366,250 $ 2020 70,500 705,000 176,250 951.750 76 250 228.750 305,000 1,256,750 HE Prey 1 of 4 Next > Required 1 Required 2 Required 3 Assume that by December 31, 2021, 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 $3.910,000. 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 2021 Income from continuing operations before income taxes $ 2,205,000 5 income (loss) from operations of discontinued component 551 250 income tax benefit (expense) 1,653,750 Income from continuing operations 4,410,000 Discontinued operations gain (loss) Income tax benefit (expense) (105,000) Income (loss) from operations of discontinued component (26,250) Income from discontinued operations (131,250) Net income $ 4,278,750 $ 2020 705,000 176,250 528,750 1,410,000 v 305,000 76 250 381,250 1,791 250