On November 1, 2022, Crane Corporation management decided to discontinue operation of its Rocketeer Division and approved a formal plan to dispose of the division. Crane is a successful corporation with earnings of $210.00 million or more before tax for each of the past five years. The Rocketeer Division, a major part of Crane's operations, is being discontinued because it has not contributed to this profitable performance. The division's main assets are the land, building, and equipment used to manufacture engine components. The land, building, and equipment had a net book value of $58.80 million on November 1, 2022. Crane's management has entered into negotiations for a cash sale of the division for $50.40 million (net of costs to sell). The sale date and final disposal date of the division is expected to be July 1, 2023. Crane has a fiscal year ending May 31. The results of operations for the Rocketeer Division for the 2022-2023 fiscal year and the estimated results for June 2023 are presented below. The before-tax losses after October 31, 2022, are calculated without depreciation on the building and equipment. Period June 1, 2022, to October 31, 2022 November 1, 2022, to May 31, 2023 June 1 to 30, 2023 (estimated) O Period June 1, 2022, to October 31, 2022 November 1, 2022, to May 31, 2023 June 1 to 30, 2023 (estimated) Your answer is partially correct. Before-Tax Loss $(3,500,000) (2,240,000) (420,000) Income from Continuing Operations Before-Tax Loss The Rocketeer Division will be accounted for as a discontinued operation on Crane's financial statements for the year ended May 31 2023. Crane's tax rate is 25% on operating income and all gains and losses. Crane prepares financial statements in accordance with IFRS. Net Income /(Loss) $(3,500,000) (2,240,000) (420,000) 15⁰ 4 Indicate how the discontinued operations and pending sale of the Rocketeer Division would be reported on Crane's income statement for the year ended May 31, 2023. Loss from Operation of the Rocketeer Division Less Applicable Income Tax Recovery Loss on Impairment of Rocketeer Division Assets Less Applicable Income Tax Recovery $