The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2018 and 2017: 4 2018 2017 Sales Cost of Goods Sold Gross Profit Operating Expense Operating Income Gain on sale of division $15,000,000 $9,600,000 9.200,000 6,000,000 5,800,0003,600,000 200,000 2,600,000 2,600,000 1,000,000 600,000 Income Tax expense Net Income 3,200,0001,000,000 1,280,000 400,000 S1,920,000 $ 600,000 On October 15, 2018, 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, 2018, for $5,000,000. Book value of the division's assets was $4,400,000. The division's contribution to Jackson's operating income before-tax for each year was as follows: 2018: $400,000 2017 S300,000 Assume an income tax rate of 40 percent Prepare a revised income statement for 2018 according to GAAP, beginning with income from continuing operations before income taxes. Ignore EPS disclosures 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 $5,000,000. What would be the amount presented for discontinued operations? Provide supporting calculations and/or explanations 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 $3,900,000. What would be the amount presented for discontinued operations? Provide supporting calculations and/or explanations