On August 1, 2017, Rocket Retailers adopted a plan to discontinue its childrens clothing division, which qualifies as a component of the business according to GAAP. The disposal of the division was expected to be concluded by June 30, 2018. On December 31, 2017, Rockets fiscal year-end, the following information relative to the discontinued operation was accumulated:

Operating Income (pre-tax) Jan 1, 2017 - Dec 31, 2017	$ 438,000
Estimated Operating Income (pre-tax) Jan 1, 2018 June 30, 2018	180,000
Net Book Value of the Component	2,750,000
Fair Value of the Component	2,500,000
Estimated Disposal Costs	100,000
Income Tax Rate	21%

USE THE INFORMATION FROM #1 & #2 ABOVE, AND THE FOLLOWING INFORMATION, TO ANSWER THE NEXT (6) QUESTIONS:

Rocket finalized the sale of the component on June 30, 2018 for cash proceeds of $2,600,000. Actual operating income of the discontinued component from Jan 1 Jun 30, 2018, was $120,000. (This $120,000 is NOT included in the $1,500,000 Income Before Taxes listed below.) Use this information and the Additional Data presented below to prepare a partial Income Statement for the year ended December 31, 2018 beginning with Income from Continuing Operations. Include Earnings Per Share disclosures.

Additional Data:

Income Before Taxes (18) $1,500,000

Income Tax Rate (18) 21%

5% Preferred Stock ($100 Par, 10,000 shares issued)

Common Stock ($1 par, 500,000 shares issued, 400,000 outstanding)

Partial Income Statement

Rocket Corporation

For the Year Ended December 31, 2018

Income from Continuing Operations $ Blank 1

Gain/Loss from Discontinued Operations (net of tax) $ Blank 2

Net Income $ Blank 3

E.P.S.

Continuing Operations $ Blank 4

Discontinued Operations $ Blank 5

Net Income $ Blank 6

b. Determine Gain/Loss from Discontinued Operations (net) $_____________________