Page 3: 2 On 12/1/2020 the Robinson company sold the ALPHA division to another company for $5.000. According to GAAP, the division is a component of the entity. At the time of the sale, the book value of ALPHA's assets was $10,000 From 1/1/20 to the day of the sale, ALPHA's operations generated a pretax proft equal to $20.000 If Robinson's PRE-TAX income from continuing operations is $100.000 and the tax rate is 40%, what is Robinson going to report as "net Income at the bottom line of the income statement for the year ended 12/31/2020? Page 4: ge 3: Question 6 (18 points) (continued from the previous question) Suppose that on 12/31/2020, the ALPHA company has not sold yet the operation, but they believe they are going to sell it in January 2021 for $5,000. Which of the following statements are true? (select all that apply - i.e. only one or as many as all of them) In the 2020 income statement, "Tax Expense" would be the same In the 2020 income statement, "Net Income" would be the same 6 In the 2020 income statement, "Net Income would be higher In the 2020 incanje statement, "Income from continuing operations" would be higher US-GAAP would prohibit reporting any income effect from the soon-to-be- discontinued operation In the 2020 balance sheet, "Retained Earnings" would be higher