Question 7 (10 marks) Part A (5 marks) During calendar 2020, Macadamia Ltd. entered into an agreement to sell its Trucking Division to Poodle Ltd., in order to focus its efforts on expansion of its other divisions. For purposes of income statement reporting, the Trucking Division qualifies as a separate component of the business. The Trucking Division incurred a net loss of $500,000 from the beginning of the year to the date of sale, December 15, 2020. The combined assets of the Trucking Division had a carrying value of $14,680,000 and were sold for $18,000,000 on December 15, 2020. Assume Macadamia has an income tax rate of 40%. Required: Calculate the amounts Macadamia should report for the following items in the Discontinued Operations section of the December 31, 2020 income statement a) Loss on Operation of Trucking Division and b) Gain/Loss on Disposal of Trucking Division. Part B (5 marks) Alpha Ltd. had the following information for the year 2020: Cash balance, Jan 1 $ 984,000 Total assets, Dec 31 $ 808,000 Accounts receivable, Jan 1 152,000 Cash balance, Dec 31 1600,000 Collections from customers 1,600,000 Accounts receivable, Dec 31 288,000 Retained earnings, Jan 1 304,000 Dividends paid during year 88,000 Total assets, Jan 1 600,000 Total liabilities, Dec 31 328,000 Issued common shares for cash 40,000 Common shares, Jan 1 80,000 Required: Calculate the net income for 2020.