Outstanding Homes Corporation

Income Statement

For the Year Ended December 31, 2018

Sales

$800

Cost of Goods Sold

(80)

Gross Profit

$720

Selling Expenses

(30)

General and Administrative Expenses

(80)

Other Revenues and Expenses

(65)

Loss on Asset Impairment

(25)

Income Before Tax

$520

Income Tax Expense (at 40%)

(208)

Net Income

$312

E5-8 (similar to) Question Help The mobile home division accounts for 20% of sales, cost of goods sold, selling, and general and administrative expenses. Assume no gain or loss on remeasurement of the division Outstanding Homes Corporation provided the following statement of net income on December 31, 2018, before the disposal of a business segment. The income statement includes the results of operations of Outstanding's mobile home division. The company made a commitment to dispose of the mobile home division on December 1, 2018 (Click the icon to view the December 31, 2018 statement of net income before the disposal of the mobile home division.) Requirement Prepare the multiple-step income statement for 2018 only, assuming that Outstanding sells the segment on December 31 at a $125 pretax loss Round to the nearest dollar (Use the condensed income statement format and assume the company is subject to a 40% income tax rate. Round your answers to the nearest whole dollar. Use parentheses or a minus sign to enter any loss amount) Outstanding Homes Corporation Statement of Net Income For the Year Ended December 31, 2018 Net Income