Please do not give solution in image format ?. Problem 4-2 (Algo) Discontinued operations [LO4-4]The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31,2024 and 2023:Sales revenueCost of goods soldGross profitOperating expensesOperating income.Gain on sale of division.Income tax expenseNet income$ 445,000$ 345,000Assume an income tax rate of 25%.20242023On October 15, 2024, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as acomponent of an entity as defined by GAAP. The division was sold on December 31, 2024, for $5,270,000. Book value of the division'sassets was $4,580,000. The division's contribution to Jackson's operating income before-tax for each year was as follows:Show Transcribed Text20242023$ 15,900,000 $ 10,500,0009,650,0006,450,0006,250,0003,560,0002,690,000690,0003,380,000845,000$ 2,535,000Show Transcribed TextRequired:Note: In each case, net any gain or loss on sale of division with annual income or loss from the division and show the tax effect ona separate line.Required 1 Required 2 Required 31. Prepare revised income statements according to generally accepted accounting principles, beginning with income fromcontinuing operations before income taxes. Ignore EPS disclosures.2. Assume that by December 31, 2024, the division had not yet been sold but was considered held for sale. The fair value of thedivision's assets on December 31 was $5,270,000. Prepare revised income statements according to generally acceptedaccounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.3. Assume that by December 31, 2024, the division had not yet been sold but was considered held for sale. The fair value of thedivision's assets on December 31 was $3,990,000. Prepare revised income statements according to generally acceptedaccounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.4,050,0002,960,0001,090,0001,090,000272,500$817,500Income from continuing operations before income taxesIncome tax benefit (expense)Income from discontinued operationsNet incomeIncome from continuing operationsDiscontinued operations:Income (loss) from operations of discontinued componentPrepare revised income statements according to generally accepted accounting principles, beginning with income fromcontinuing operations before income taxes. Ignore EPS disclosures.Note: Amounts to be deducted should be indicated with a minus sign.JJACKSON HOLDING COMPANYComparative Income Statements (in part)For the Years Ended December 31< Required 1Ĉ2024000$Required 2 >2023www00 Required 1 Required 2 Required 3Assume that by December 31, 2024, the division had not yet been sold but was considered held for sale. The fair value of thedivision's assets on December 31 was $5,270,000. Prepare revised income statements according to generally acceptedaccounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.Note: Amounts to be deducted should be indicated with a minus sign.Income from continuing operations before income taxesJACKSON HOLDING COMPANYComparative Income Statements (in part)For the Years Ended December 31Income from continuing operationsDiscontinued operations:Income from discontinued operationsNet incomeShow Transcribed TextRequired 1 Required 2Required 3< Required 1Income from continuing operations before income taxesIncome from continuing operationsDiscontinued operations:Income from discontinued operationsNet income$JACKSON HOLDING COMPANYComparative Income Statements (in part)For the Years Ended December 31< Required 22024$cRequired 3 >0Assume that by December 31, 2024, the division had not yet been sold but was considered held for sale. The fair value of thedivision's assets on December 31 was $3,990,000. Prepare revised income statements according to generally acceptedaccounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.Note: Amounts to be deducted should be indicated with a minus sign.00 $202400 $2023Required 302023000Show less A00Show less A

Income from continuing operations: It is the after tax income generated by a company from its…

Problem 4-2 (Algo) Discontinued operations [LO4-4] The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2024 and 2023: Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Gain on sale of division Income tax expense Net income 2024 2023 $ 15,900,000 $ 10,500,000 9,650,000 6,450,000 4,050,000 2,960,000 1,090,000 6,250,000 3,560,000 2,690,000 690,000 3,380,000 845,000 $ 2,535,000 1,090,000 272,500 $ 817,500 On October 15, 2024, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as a