Surgent Co. reported pre-tax income for all of its operations (including its book division) of $ 12 million for the year ended December 31, 2018. On November 1, 2018 Surgent decided to sell its book division and this was considered a strategic shift in Surgent's operations. During 2018 the book division incurred a loss of $ 4 million. The carrying! value of the book division exceeded Net Realizable Value by $ 600,000. (which includes selling costs). Surgent's 2018 income tax rate is 30 % on all income. a.) Prepare a PARTIAL statement of net income for Surgent for 2018 beginning with Income before tax. Include proper headers. b.) Assume that Surgent is unable to dispose of the book division during 2019 and the division loses another $ 2 million and the net realizable value decreases by another $ 1.2 million. What amounts would Surgent report in its 2019 financial statements under discontinued operations ? Assume the 2019 income tax rate is now 25% thanks to the new US corporate income tax rates