Write an Accounting Issues Memo for Smart Cookie Co. to evaluate whether the retail division should be reported as a discontinued operation in Smart cookie F/S and, If so, what implications this has on Smart Cookie Income Statement and Balance Sheet. Clearly state what Codifications were based on. Consider Held for Sale classification and its impact on F/S. Net of Tax applies in this case.

Cookie Crumbs Smart Cookie Co., a private company, has announced plans to sell its Retail division's four stores, along with announcing the planned layoffs of the Retail division's employees. Prior to the closure, the retail stores sold fresh-baked cookies directly to customers in stand-alone retail stores. Also prior to the closure, Management separately monitored the forecasts and results of the Retail division, apart from its Wholesale division. Management has hired a commercial real estate broker to locate a buyer for the properties, and management expects that the properties will be under contract within the next six months. Following the sale, Smart Cookie plans to shift its focus to its Wholesale division, which sells packaged cookies to retail stores. Evaluate whether the Retail division should be reported as a discontinued operation in Smart Cookie's financial statements and, if so, what implications this has on Smart Cookie's income statement and balance sheet presentation