Assume that the Special Contract Division of Harris experienced the following transactions during the year ended December 31, 2020. (Click the icon to view the transactions.) Requirements 1. Prepare the Special Contracts Division income statement for the year ended December 31, 2020. 2. Identify the accounting concepts, assumptions, or principles used in accounting for the items described in a through f. State how you have applied the concept, assumption, or principle in preparing the Division's income statement. Requirement 1. Prepare the Special Contracts Division income statement for the year ended December 31, 2020. More info Begin by completing the header, and then complete the body of the statement. (Round amounts to the nearest whole dollar. Use a. Revenue: Total revenue Expenses: Total operating expenses Net income (loss) b. C. d. e. Suppose the division provided copy services to a customer for the discounted price of $265,500. Under normal conditions, Harris would have provided these services for $295,000. Other revenues totalled $51,000. Salaries cost the division $21,000 to provide these services. The division had to pay employees overtime. Ordinarily, the salary cost for these services would have been $18,900. Other expenses totalled $246,000. Income tax expense was 36% of income before tax. Harris has two operating divisions. Each division is accounted for separately to indicate how well each is performing. At year-end, Harris combines the statements of divisions to show results for Harris as a whole. Inflation affects the amounts that Harris must pay for copy machines. To show the effects of inflation, net income would drop by $3,000. f. If Harris were to go out of business, the sale of its assets would bring in $180,000 in cash. Print Done Requirement 2. Identify the accounting concepts, assumptions, or principles used in accounting for the items described in a through f. State how you have applied the concept, assumption, or principle in preparing the Division's income statement. Identify the accounting assumption or characteristic that provides guidance in accounting for the item described. How have you applied the assumption or characteristics in preparing the special contracts division income statement? Begin with transaction a. data. What management believes the goods are worth is based on a. b. Report revenues at their Account for expenses value because that amount is supported by and C. d. Account for because Each operating division of the company is e. Accounting in Canada the effect of f. There is no evidence that Harris is with Harris as a whole so it seems for accounting purposes. Therefore, the potential sale value of Harris assets is not recorded. to dispute