The following is the adjusted trial balance for the Woodbine Circle Corporation on December 31, 2007:

Other financial data for the year ended December 31, 2007:
Federal Income Taxes________________________
Paid on Federal Tax Deposit Form ........ $700,000
Accrued ....................... 200,000
Total charged to income tax expense (estimated) .... $900,000
Tax rate on all types of taxable income ....... 40%
Discontinued Operations _______________________
On September 30, 2007 Woodbine sold its Auto Leasing (AL) Division for $4,000,000. The book value of this division was $4,250,000 at that date. For financial statement purposes, this sale was considered as discontinued operation of a component of the company.
Capital Structure____________________________
Common stock, par value $1 per share, traded on the New York Stock Exchange:
Number of shares outstanding during all of 2007 1,000,000
Required
Using the multiple-step format, prepare a formal income statement for Woodbine for the year ended December 31, 2007, together with the appropriate supporting schedules. All income taxes should be appropriatelyshown.

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Debit Credit Cash $ 500,000 1,500,000 2,500,000 15,100,000 Inventory Property, plant, and equipment Accumulated depreciation Accounts Income taxes Notes payable Common stock ($1 par value) Additional paid-in capital Retained earnings, Jan 2007 Sales-regular 4,900,000 2,200,000 200,000 1,000,000 1,000,000 6,200,000 3,000,000 10, 100,000 2,000,000 Cost of sales-regular Cost of sales-AL Division Administrative expenses-regular Administrative expenses-AL Division Interest expense-regular Interest expense-AL Division Loss on sale of AL Division Gain from extraordinary event Income tax expense 6,200,000 900,000 2,000,000 300,000 210,000 140,000 250,000 300,000 900,000 $30,500,000 $30,500,000