You have recently begun your dream job in the accounting

You have recently begun your dream job in the accounting department at Checks and Balances Inc. (C & B). C & B has many different operating divisions, however, you are told that C & B has decided to sell its calculator division. While reviewing the 2020 Management Discussion and Analysis you read that the calculator division is run as a distinct operation with its own financial records. The operating activities of the calculator division as a manufacturer are distinct from C & B’s other divisions which focus on the distribution of educational publications. Calculator production is also the only division operating in the United States, and C & B is looking to centralize operations in Canada. In the past the calculator division has generated 30-35% of the revenue and 8-10% of the profits, which is material to the users of C & B’s financial reporting.

You search through the files of your predecessor and locate the following additional information, though you are cautioned that your predecessor made a lot of mistakes and was fired as a result:

Required:

Based on the information provided, is the calculator division a component for the purposes of determining whether this is a discontinued operation? Explain your recommendation.

Assuming the calculator division is a discontinued operation, you are asked to correct the draft income statement provided for the year ended December 31, 2020 (in proper form) and include appropriate earnings per share disclosure.