On August 1, 2018, Sparky Mercantile 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, 2019. On December 31, 2018, Sparkys fiscal year-end, the following information relative to the discontinued operation was accumulated

Operating Income (pre-tax) Jan 1, 2018 - Dec 31, 2018	$ 549,000
Estimated Operating Income (pre-tax) Jan 1, 2019 June 30, 2019	290,000
Net Book Value of the Component	3,225,000
Fair Value of the Component	3,100,000
Estimated Disposal Costs	120,000
Income Tax Rate	30%

1) Because the sale was not complete by December 31, 2018, Sparky had to test the component for impairment. Determine the Impairment Loss (net of tax), that Sparky would report in their 2018 footnotes (if any): $__171500______(answered already)___________

2) In its Income Statement for the year ended December 31, 2018, Sparky would report a total Gain/Loss on Discontinued Operations (net of tax) of: $____212800___(answered already)

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

Sparky finalized the sale of the component on June 30, 2019 for net cash proceeds of $2,700,000. Actual operating income of the discontinued component from Jan 1 Jun 30, 2019, was $220,000. (This $220,000 is NOT included in the $1,900,000 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, 2019 beginning with Income from Continuing Operations. Include Earnings Per Share disclosures.

Additional Data:

Income Before Taxes (19) $1,900,000

Income Tax Rate (19) 30%

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

Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)

QUESTIONS: please show work

1) determine income from continuing operations ('19): ______________

2) determine gain/loss from discontinued operations (net of tax) for 2019: _____________

3) determine net income for 2019: _________________