XSport Sporting Goods Co. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 2016, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:

Sales:
Winter Sports Division	$10,540,000
Summer Sports Division	13,645,000
Cost of Goods Sold:
Winter Sports Division	6,300,000
Summer Sports Division	7,888,000
Sales expense:
Winter Sports Division	1,660,000
Summer Sports Division	1,898,000
Administrative Expense:
Winter Sports Division	1,014,000
Summer Sports Division	1,209,600
Advertising Expense	481,500
Transportation Expense	135,500
Accounts Receivable Collection Expense	120,450
Warehouse Expense	772,000

The bases to be used in allocating expenses, together with other essential information, are as follows:

A.	Advertising expenseincurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $219,300; Summer Sports Division, $262,200.
B.	Transportation expensecharged back to divisions at a charge rate of $5 per bill of lading: Winter Sports Division, 12,000 bills of lading; Summer Sports Division, 15,100 bills of lading.
C.	Accounts receivable collection expenseincurred at headquarters, charged back to divisions at a charge rate of $5 per invoice: Winter Sports Division, 9,680 sales invoices; Summer Sports Division, 14,410 sales invoices.
D.	Warehouse expensecharged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 90,000 square feet; Summer Sports Division, 103,000 square feet.

	Required:
1.	Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. (You may find it useful to work the Supporting Calculations first.)
2.	Provide supporting calculations for service department charges.