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. The 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 contribution to Jackson's before-tax income from operations for each year was as follows:

2013 $400,000 loss

2012 $300,000 loss

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 answers 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 $3,900,00. How would the presentation of discontinued operations be different from your answers to requirement 1?

\begin{tabular}{lrr} & \multicolumn{1}{c}{2013} & 2012 \\ \hline Sales & $15,000,000 & $9,600,000 \\ Cost of goods sold & 9,200,000 & 6,000,000 \\ \hline Gross profit & 5,800,000 & 3,600,000 \\ Operating expenses & 3,200,000 & 2,600,000 \\ \hline Income from operations & 2,600,000 & 1,000,000 \\ Gain on sale of division & 600,000 & \\ & 3,200,000 & 1,000,000 \\ Income tax expense & 1,280,000 & 400,000 \\ Net income & $1,920,000 & $600,000 \\ \hline \hline \end{tabular} \begin{tabular}{lrr} & \multicolumn{1}{c}{2013} & 2012 \\ \hline Sales & $15,000,000 & $9,600,000 \\ Cost of goods sold & 9,200,000 & 6,000,000 \\ \hline Gross profit & 5,800,000 & 3,600,000 \\ Operating expenses & 3,200,000 & 2,600,000 \\ \hline Income from operations & 2,600,000 & 1,000,000 \\ Gain on sale of division & 600,000 & \\ & 3,200,000 & 1,000,000 \\ Income tax expense & 1,280,000 & 400,000 \\ Net income & $1,920,000 & $600,000 \\ \hline \hline \end{tabular}