has It is December 2018, and Sharon Sowers, the CEO of Mallory Services, has decided to sell the clerical division. She has received an offer for $105,000 but is undecided about whether she wishes to complete the sale in 2018 or 2019. She is currently evaluating the effects of the sale on 2018 reported net income. Income from continuing operations for 2018 is estimated to be $950,000 (excluding the activities of the clerical division), and information about the clerical division is provided as follows. The company's tax rate is 35 percent. sale in 0 si r has rec December 2018 Year Ended 2018 Sales Operating expenses 35,000 Assets $93,000 26,000 23,000 Liabilities a. Prepare the 2018 income statement, beginning with net income from continuing operations, assuming that Sharon accepts the offer, and explain how a user might interpret the items on the income statement in terms of earnings persistence