Previous Page Next Page Page 7 of 13 Question 7 (15 points) On 12/1/2020 the Robinson company sold the ALPHA division to another company for $17,000. According to GAAP, the division is a component of the entity and its disposal represents a strategic shift for Robinson. At the time of the sale, the book value of ALPHA's assets was $20,000. From 1/1/20 to the day of the sale, ALPHA's operations generated a pretax profit equal to $9,000. However, Robinson's managers believed that ALPHA's revenues will decline in 2021, a year in which they predict ALPHA will report a pretax loss equal to at least $4,000: for this reason, they sold it. If Robinson's after-tax income from continuing operations is $40,000 and the tax rate is 20%, what is Robinson going to report as "net income" at the bottom line of the income statement for the year ended 12/31/2020? NOTE: Do not include the $ symbol in the answer. Also, use the comma to separate the thousands. For example, a correct answer will be "45,000", not "$45,000" or "45000". Use parentheses for a negative number: for example, write "(45,000)", not "-45,000". A/ Previous Page Page Page 7 of 13