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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 1,500,000 2,500,000 15,100,000 $4,900,000 2,200,000 200,000 1,000,000 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 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 O more Check My Work uses remaining 300,000 eBook Calculator Administrative expenses-AL Division Interest expense-regular Interest expense-AL Division Loss on sale of AL Division Gain on sale of land Income tax expense 210,000 140,000 250,000 300,000 900,000 $30,500,000 $30,500,000 Other financial data for the year ended December 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 u nces the cale was neinterest as a discontinued C o more Check My Work uses remaining. eBook 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 1.740,000 X Income from continuing operations before income taxes Income tax rate Total income taxes on continuing operations Incorrect more Check My Work uses remaining 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 pront 1.100.000 Administrative expenses 300.000 Income from operations of AL Division $ 270.000 Interest expense 140.000 Income before Income taxes Administrative expenses x 7 Check My Won 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. 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 Cost of sales 6,200,000 Gross profit $ 3.900,000 Operating Income from discontinued AL Division (less applicable Income taxes Net Income Other expense Administrative expenses -2,000,000 x -210,000 Interest expense Loss on sale of AL Division (less applicable income tax saving) x 250,000 X Gain on sale of land 300.000 X Net Income Discontinued operations Operating into y Income from continuing operations before income taxes X Income from continuing operations y more Check My Work uses remaining eBook . Calculator Net Income X Other expense Administrative expenses x Interest expense Loss on sale of AL Division (less applicable income tax saving) y Gain on sale of land X Net Income X Discontinued operations Operating In tem x Income from continuing operations before Income Income from continuing operations x Components of Income Gross profit X Operating Income X Net Income For this problem, you should compare the statements that you were given to the following examples. You should consider headings, classifications and O more Check My Work uses remaining 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 1,500,000 2,500,000 15,100,000 $4,900,000 2,200,000 200,000 1,000,000 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 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 O more Check My Work uses remaining 300,000 eBook Calculator Administrative expenses-AL Division Interest expense-regular Interest expense-AL Division Loss on sale of AL Division Gain on sale of land Income tax expense 210,000 140,000 250,000 300,000 900,000 $30,500,000 $30,500,000 Other financial data for the year ended December 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 u nces the cale was neinterest as a discontinued C o more Check My Work uses remaining. eBook 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 1.740,000 X Income from continuing operations before income taxes Income tax rate Total income taxes on continuing operations Incorrect more Check My Work uses remaining 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 pront 1.100.000 Administrative expenses 300.000 Income from operations of AL Division $ 270.000 Interest expense 140.000 Income before Income taxes Administrative expenses x 7 Check My Won 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. 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 Cost of sales 6,200,000 Gross profit $ 3.900,000 Operating Income from discontinued AL Division (less applicable Income taxes Net Income Other expense Administrative expenses -2,000,000 x -210,000 Interest expense Loss on sale of AL Division (less applicable income tax saving) x 250,000 X Gain on sale of land 300.000 X Net Income Discontinued operations Operating into y Income from continuing operations before income taxes X Income from continuing operations y more Check My Work uses remaining eBook . Calculator Net Income X Other expense Administrative expenses x Interest expense Loss on sale of AL Division (less applicable income tax saving) y Gain on sale of land X Net Income X Discontinued operations Operating In tem x Income from continuing operations before Income Income from continuing operations x Components of Income Gross profit X Operating Income X Net Income For this problem, you should compare the statements that you were given to the following examples. You should consider headings, classifications and O more Check My Work uses remaining