Question No 2. (10 Marks) The following items are from Taperline Corporation on December 31, 2008. Assume a flat 40% corporate tax rate on all items, including the casualty loss. Sales $670.000 Rental income 3.600 Gain on the sale of fixed assets 3.000 General and administrative expenses 110.000 Selling expenses 97.000 Interest expense 1.900 Depreciation for the period 10,000 Extraordinary item (casualty loss-pre-tax) 30.000 Cost of sales 300,000 Cumulative effect of change (pre-tax) (20000) Common stock (30,000 shares outstanding) 150,000 Provision for unusual write-offs 50.000