Reference no: EM132566512

The partial statement of comprehensive income for Jenn-LO Ltd., a publicly accountable entity, for the year ended December 31, 20x1, is as follows:

Sales $24,000,000

Cost of goods sold (15,000,000)

Gross margin 9,000,000

Operating expenses 7,500,000

Operating income 1,500,000

Income taxes (30%) 450,000

Net income $1,050,000

• In August 20x1, the company's board made a decision to sell one of its six divisions. In September the division was put up for sale with a listing price of $9.5 million. The division being sold had revenues of $3.2 million, cost of goods sold of $2.3 million and operating expenses of $850,000. These amounts are included in the above statement of comprehensive income.
• The carrying value of the net assets of the division were $9.5 million, and the fair market value of the division is estimated to be $8.5 million. The costs to sell the division are expected to be 11% of the fair market value of the net assets. These amounts have not been taken into consideration in preparing the statement of comprehensive income above.

Required -

Question 1: Prepare revised statement of comprehensive income.