I need help with this problem. I posted it already once, but got vey confusing answer. Can sombody explain it to me. Please.

The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2016 and 2015:

		2016		2015
Sales	$	17,000,000	$	11,600,000
Cost of goods sold		10,200,000		7,000,000
Gross profit		6,800,000		4,600,000
Operating expenses		4,000,000		3,400,000
Operating income		2,800,000		1,200,000
Gain on sale of division		800,000
		3,600,000		1,200,000
Income tax expense		1,080,000		360,000
Net income	$	2,520,000	$	840,000

On October 15, 2016, 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, 2016, for $5,600,000. Book value of the divisions assets was $4,800,000. The divisions contribution to Jacksons operating income before-tax for each year was as follows:

2016	$500,000	loss
2015	$400,000	loss

Assume an income tax rate of 30%.

Required: (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 on a separate line)

1.

Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.

JACKSON HOLDING COMPANY
Comparative Income Statements (in part)
For the Years Ended December 31
	2016	2015
Income from continuing operations before income taxes
Income (loss) from operations of discontinued component
Income from continuing operations	0	0
Discontinued operations gain (loss):
Income tax benefit (expense)
Income (loss) on discontinued operations	0	0
	$0	$0

2.

Assume that by December 31, 2016, the division had not yet been sold but was considered held for sale. The fair value of the divisions assets on December 31 was $5,600,000. How would the presentation of discontinued operations be different from your answer to requirement 1? (Amounts to be deducted should be indicated with a minus sign.)

JACKSON HOLDING COMPANY
Comparative Income Statements (in part)
For the Years Ended December 31
	2016	2015
Income from continuing operations before income taxes
Income (loss) from operations of discontinued component
Income from continuing operations	0	0
Discontinued operations gain (loss):
Income tax benefit (expense)
Income (loss) on discontinued operations	0	0
	$0	$0

3.

Assume that by December 31, 2016, the division had not yet been sold but was considered held for sale. The fair value of the divisions assets on December 31 was $4,100,000. How would the presentation of discontinued operations be different from your answer to requirement 1? (Amounts to be deducted should be indicated with a minus sign.)

JACKSON HOLDING COMPANY
Comparative Income Statements (in part)
For the Years Ended December 31
	2016	2015
Income from continuing operations before income taxes
Income (loss) from operations of discontinued component
Income from continuing operations	0	0
Discontinued operations gain (loss):
Income tax benefit (expense)
Income (loss) on discontinued operations	0	0
	$0	$0