In 2017, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows: Item Debit Credit
1. Net sales $3,040,000
2. Gain on state's condemnation of company property, net of tax 269,000
3. Cost of goods sold $1,551,448
4. Income taxes expense 206,000
5. Depreciation expense 242,500
6. Gain on sale of wholesale business segment, net of tax 790,000
7. Loss from operating wholesale business segment, net of tax 470,000
8. Loss of assets from a meteor strike, net of tax 642,000
Prepare the income statement for the calendar year 2017.

                                Randa Merchandising, Inc

                                        Income Statement

                           For the year Ended December 31, 2017

Net sales                                                                          $3,040,000

Expenses

Cost of goods sold                          $1,551,448

Depreciation Expenses                   $242,500              $1,793,948

Total Operating Expenses                                            $1,240,052

Other Unusual / infrequent gains (Losses)

Gain on state condemnation of         $269,000

company property, net of tax

Loss of assets from meteror strike,  ($642,000)           $373,000

net of tax

Income from continuing operations before taxes       $867,052

Income Tax expenses                                                      $206,000

Income from Continuing operations                               $661,052

Discontinuing segment

Loss from operating wholesale         $470,000

business segment (net of tax)

Gain on sales of wholesale               ($790,000)           $320,000

business segment (net of tax)

Net Income                                                                      $981,052

answer: life insurance

explanation: