Question $3\mathrm{.}3($Total: $30$ marks$)$

Bubble Tea Corporation operates several stores in Ontario $($Toronto$,$ Mississauga, Oakville, Barrie and Huntsville$).$ The restructuring of its organization on November $20,2020,$ has led to the decision to sell its Huntsville store. In preparing financial statements at December $31,2020,$ the following information was made available:

The Huntsville operation incurred a loss of $$283,500$ for the $2020$ calendar year, including $$225,000$ for the period January $1$ to November $20,2020.$

Estimated costs to sell are $$300,000.$

At December $31,2020,$ the fair value of the Huntsville assets is estimated at $$7$ million and the carrying $($book$)$ value is $$7\mathrm{.}3$ million.

The combined provincial and federal income tax rate is $30\%.$

It is estimated that the operation will lose an additional $$250,000$ before it is sold.

Required

$1.$ The Huntsville operation qualifies for reporting as a discontinued operation. What amount should be reported in the discontinued operations section of Bubble Tea$$s $2020$ income statement?

$2.$ In early $2021,$ the Huntsville operation is sold for $$8\mathrm{.}5$ million, with actual costs to sell of $$400,000.$ Additional disposal costs related to the sale are $$500,000.$ The operation lost an additional $$150,000$ before it was sold. What amount should be reported in the discontinued operations section of Bubble Tea$$s $2021$ income statement?