The unaudited income statement and balance sheet of Gourmet Foods Corporation for the 2012 and 2011 are given below (in $ million): PROBLEM 6-3 Operations BALANCE SHEET INCOME STATEMENT 2012 2011 2012 2011 Revenues. Operating expenses Net interest expense Operating assets... 4,450 4 Investment securities...1.200 1,200 Total Assets...5,650 5,200 40 90 40 120 Net income....206 152 Equity2206 2,000 Labilities & Equity 5650 5,650 In 2012, Gourmet Foods sold its meat packing division for $600 million in cash (the decision to sell the unit was made on the same day). On the date of sale, this division had operating assets of $860 million and operating liabilities of $300 million. At the end of 2011, operating assets and liabilities of this division were $821 and $300 million, respectively. The division had no debt. Its operations for 2012 and 2011 were as follows: 2012 2011 485 460 Operating income39 26 CHECK 2012 Income from continuing operations, $167 The accountant of Gourmet Foods had not made any entries regarding the sale of this division The tax accountant opined that 35% of the gain on sale would be taxable. Required: a. Gourmet Foods' auditor decides that the sale of the meat-packing division should be treated as a discontinued eration. Show how the income statement and balance sheet of Gourmet Foods will need to be re flect this change. b. Assume you were a financial analyst. How would you treat this discontinued operation