In the current year, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. Debit Credit $2,990,000 278,000 Item 1. Net sales 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 $1,525,931 222,000 227,500 752,500 456,000 664,000 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.) RANDA MERCHANDISING, INC. Income Statement For Year Ended December 31 Net sales Expenses: Gain on state's condemnation of company property Gain on sale of wholesale business segment (net of tax) Total operating expenses 0 0 Other unusual and/or infrequent gains (losses) Cost of goods sold 0 Income tax expense Depreciation expense Loss from operating wholesale business segment (net of tax) Loss on assets from meteor strike Discontinued segment: 0 0 $ 0