in the current year, kanga mercnanaising incorporated soia its interest in a chain or wholesale outlets, taking the comp completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections an income statement follows. 1. Net sales Item 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense. 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Debit Credit $ 4,300,000 341,000 $ 2,194,000 322,000 344,000 1,149,000 658,000 949,000