Exercise 13-18A Income statement presentation LO A2 In the current year, 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. Debit Credit $2,920,000 245,000 Item 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike $1,490, 207 209,000 227,500 757,500 447,000 658,000 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.) RANDA MERCHANDISING, INC. Income Statement For Year Ended December 31 $ 2,920,000 Net sales Expenses: Cost of goods sold Depreciation expense $ 1,490,207 222,500 Total operating expenses 1,712,707 1,207,293 Other unusual and/or infrequent gains (losses) Gain on sale of wholesale business segment (net of tax) Loss on assets from meteor strike 260,000 646,000 2,113,293 2,113,293 Discontinued segment: $ 2,113,293