Complex Income Statement The following items were derived from Woodbine Circle Corporation's adjusted trial balance on December 31, 2019: Debit Credit Cash $500,000 Accounts recelvable, net 1,500,000 Inventory 2,500,000 Property, plant, and equipment 15,100,000 Accumulated depreciation $4,900,000 Accounts peyable 2,200,000 Income taxes payable 200,000 Notes payable 1,000,000 Common stock ($1 par value) 1,000,000 Additional paid-in capital 5,800,000 3,000,000 Retained earnings, January 1, 2019 10,100,000 Sales-regular 2,000,000 Sales-AL Division 6,200,000 Cost of sales-regular 900,000 Cost of sales-AL Division Administrative expenses-regular 2,000,000 Administrative expenses-AL 300,000 0 more Check My Work uses remaining eBook Calculaton Administrative expenses-AL 300,000 Division Interest expense-regular 210,000 Interest expense-AL Division 140,000 Loss on sale of AL Division 250,000 Gain on sale of land 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 $700,000 200,000 Accrued Total income tax expense (estimated) $900,000 Tax rate on all types of taxable income 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. Eor financial statement nurmnses this cale wac rnncirteret ac a dierontinuen 0 more Check My Work uses remaining ok Calculator 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 Required: Prepare a schedule of the income taxes on continuing operations to be used in the completion of the income statement in part 3. Schedule 1: Income Taxes on Continuing Operations Income from continuing operations before income taxes X 1.740.000 Income tax rate 40% Total income taxes on continuing operations 1.044.000 Feedback T Check My Wok Incorrect 0 more Check My Work uses remaining ok Calculator 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) Sales 2,000,000 Cost of sales 900,000 Gross profit 1,100,000 Administrative expenses 300,000 Income from operations of AL Divislon x X 270,000 Interest expense 140,000 Income before income taxes 660.000 Administrative expenses x Feedhack YCheck My Wo Partially correct 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. 0 more Check My Work uses remaining. Using the multiple-step format, prepare a formal income statement for Woodbine for the year ended December 31, 2019. Use the information from th 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 Sales 10,100,000 6,200,000 Cost of sales Gross profit 3,900,000 Operating Income from discontinued AL Division (less applicable Income taxes) x Net Income x Other expense Administrative expenses x -2.000,000 X Interest expense -210,000 Loss on sale of AL Division (less applicable income tax saving) x -250,000 X 300,000 X Gain on sale of land x Net Income x Discontinued operations Operating Income x Income from continuing operations before income taxes x Income from continulng operations v 0 more Check My Work uses remaining. eBook Calculator Net Income x Other expense Administrative expenses X -2,000,000 X Interest expense -210,000 Loss on sale of AL Division (less applicable Income tax saving) x -250,000 X 300,000 X Gain on sale of land x Net Income X Discontinued operations Operating Income x Income from continulng operations before Income taxes x Income from continuing operations x EPS Components of Income Gross profit x Operating income x Net Income Feedback Check My We For this problem, you should compare the statements that you were given to the following exampies. You should consider headings, classifications and 0 more Check My Work uses remaining