Additional Data: Income Before Taxes (from on-going operations) ('x2) $2,470,000 Income Tax Rate ('x2) 30% 5% Preferred Stock ($100 Par, 10,000 shares issued) Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding) Partial Income Statement Desert, Inc. For the Year Ended December 31, 20x2 $ Blank 1 Income from Continuing Operations Gain/Loss from Discontinued Operations (net of tax). Net Income $ Blank 2 $ Blank 3 E.P.S. Continuing Operations Discontinued Operations $ Blank 4 $ Blank 5 Net Income $ Blank 6 a. Determine Income from Continuing Operations ('x2) $ Blank 1 *Do not use $ signs or commas in recording your answer. Question 1 1 pts USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (8) QUESTIONS: On August 1, 20x1, Desert, Inc. adopted a plan to discontinue its children's clothing division, which qualifies as a component of the business according to GAAP. The disposal of the division was expected to be concluded by March 30, 20x2. On December 31, 20x1, Desert's fiscal year-end, the following information relative to the discontinued operation was accumulated: Operating Income (pre-tax) of the Component for Jan 1 - Dec 31, 20x1 $ 658,000 3,575,000 Net Book Value of the Component at Dec 31, 20x1 Fair Value of the Component (Estimated Selling Price) 3,600,000 Estimated Disposal Costs 120,000 Income Tax Rate 30%