Complex Income Statement The following items were derived from Woodbine Circle Corporation's adjusted trial balance on December 31, 2019: Debit Credit $500,000 1,500,000 2,500,000 15,100,000 Cash Accounts receivable, net Inventory Property, plant, and equipment Accumulated depreciation Accounts payable Income taxes payable Notes payable Common stock ($1 par value) Additional paid-in capital Retained earnings, January 1, 2019 Sales-regular Sales-AL Division Cost of sales-regular Cost of sales-AL Division Administrative expenses-regular Administrative expenses-AL Division Interest expense-regular Interest expense-AL Division Loss on sale of AL Division Gain on sale of land $4,900,000 2,200,000 200,000 1,000,000 1,000,000 5,800,000 3,000,000 10,100,000 2,000,000 6,200,000 900,000 2,000,000 300,000 210,000 140,000 250,000 300,000 Income tax expense 900,000 $30,500,000 $30,500,000 Other financial data for the year ended December 31, 2019: Federal Income Taxes Paid with federal income tax return Accrued Total income tax expense (estimated) Tax rate on all types of taxable income $700,000 200,000 $900,000 40% Discontinued Operations On September 30, 2019, Woodbine sold its Auto Leasing (AL) Division for $4,000,000. The book value of this division was $4,250,000 at that date. For financial statement purposes, this sale was considered as a discontinued operation of a component of the company. Capital Structure Common stock, par value $1 per share. Number of shares outstanding during all of 2019 1,000,000 Schedule 1: Income Taxes on Continuing Operations Income from continuing operations before income taxes Income tax rate Total income taxes on continuing operations 40% Prepare a schedule of the income from operations of AL Division for the nine months ended September 30, 2019 (date of discontinuance). Schedule 2: Income from Operations of AL Division For the Nine Months Ended September 30, 2019 (Date of Discontinuance) Using the multiple-step format, prepare a formal income statement for Woodbine for the year ended December 31, 2019. Use the information from the schedules in parts 1 and 2. Round earnings per share computations to two decimal places. WOODBINE CIRCLE CORPORATION Income Statement (Multi-Step) For the Year Ended December 31, 2019 $ Other expense Discontinued operations |C000 00000 Components of Income EPS