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a) Please prepare corrected comparative Income Statements for Fossil for the three years presented above. Begin the income statement with "Income from Continuing Operations (before taxes)" and follow the format outlined in the Course Notes. ( 3 points) b) Assume that that management estimates the fair value of the division to be $1,400,000 on December 31,202. All other facts remain the same. What is the revised income from discontinued operations (net of tax) for 202 ? (1 point) c) What is the journal entry that Fossil should record on December 31,203 (i.e., when the disposal of the component is completed)? ( 1 point) - On November 1, 20X2, Fossil entered into a plan to sell one of its separate operating divisions. The book value of the net assets of the division on December 31,202 was $1,500,000. Assume that that management estimates the fair value of the division to be $1,800,000 on December 31,202. The sale was completed on December 31,203 for $1,850,000 (selling costs were immaterial). The book value of the net assets of the division on December 31,203 was $1,600,000. The disposal of the operating division represents a strategic shift that will have a major effect. - The division's contribution to Fossil's income before taxes for each year is as follows: - Fossil has a 20% income tax rate in all years. 1. The following is a condensed Income Statement for Fossil Inc. for the three years ending December 31, 201,202, and 203. The statement was prepared by Fossil's CFO, but it incorrectly reports discontinued operations. Additional information: - On November 1, 20X2, Fossil entered into a plan to sell one of its separate operating divisions. The book value of the net assets of the division on December 31,202 was $1,500,000. Assume that that management estimates the fair value of the division to be $1,800,000 on December 31,202. The sale was completed on December 31,203 for $1,850,000 (selling costs were immaterial). The book value of the net assets of the division on December 31,203 was $1,600,000. The disposal of the operating division represents a strategic shift that will have a major effect

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