Elgin flooring company sells floor coverings through two departments, carpeting and hard covering (tile and linoleum). Operating information for 2016 appears bellow.

	carpeting department	hard covering department
inventory, january1, 2016	60 000	26 000
inventory, december 31, 2016	50 000	30 000
net sales	780 000	480 000
purchases	484 000	362 000
purchases returns	28 000	8 000
purchases discounts	16 000	4 000
transportation in	18 000	14 000
traceable departmental expense	108 000	56 000

Common operating expenses of the firm were $120 000.

a) Prepare a departmental income statement showing departmental contribution to common expenses and net income of the firm. Assume an overall effective income tax rate of 35%. Elgin uses a periodic inventory system. b) Calculate the gross profit percentage for each department. c) If the common expenses were allocated 60% to the carpeting department and 40% to the hard covering department, what would the net income be for each department?