Example: Income Statement Presentation Waylon Enterprises, a manufacturer of sailboats, is preparing financial statements at 123.com presented below, which has not yet impacted net income, calculate the correct net income toca 6. Waylon is currently reporting consolidated net income of $300,000. Based on the information report in Year 6. Assume a 21% tax rate for Year 6. If the transactions do not impact the income statement, what statement would they impact? During Year 6, Waylon sold one of its factory buildings for $1,500,000. At the time of the sale the factory had a carrying (book) value of $700,000. Waylon has used a 30-year useful life to depreciate its corporate headquarters building since its purchase in Year 1. Original cost was $2.1 million and annual depreciation expense has totaled $70,000. At the beginning of Year 6, management extended the useful life to 40 years. The depreciation expense has not been recorded for the year. In January of Year 4, Waylon purchased a piece of equipment for $25,000 and estimated a useful life of 10 years. The company has recorded depreciation on a straight-line basis for Years 4, 5 and 6. At the end of Year 6, the accountant realized he had made a mistake and did not account for the $5,000 salvage value in the depreciation calculation. The tax rate in prior years was 21%. In September Year 6, Waylon decided to sell its accessories division, a component it tracks for financial reporting purposes. At the end of Year 6, the division's assets and liabilities total $2.5 million and $1.8 million respectively. Waylon is expecting to sell the division for $500k in Year 7. Revenues and expenses for the division have been properly included in the consolidated net income of $300,000. In Year 5, Waylon purchased 70% of Ficken Company's outstanding stock. For the year- ended Year 6. Ficken reported $50,000 of net income