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

A. Departmental Income Statement Elgin Flooring Company sells floor coverings through two de- partments, carpeting and hard covering (ile and linoleum). Operating information for 2016 appears below. Carpeting Hard Covering Department Department $26,000 Inventory, December 31, 2016.. 50,000 780,000 484,000 28,000 16,000 18,000 108,000 30,000 480,000 362,000 8,000 4,000 14,000 56,000 Purchases. Purchases discounts... Transportation in . .. Traceable departmental expenses. Common operating expenses of the firm were $120,000. Required a. Prepare a departmental income statement showing departmental contribution to common ex- penses and net income of the firm. Assume an overall effective income tax rate of 35%. Elgin uses a periodic inventory system. Calculate the gross profit percentage for each department. 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? b