Please be as detailed as possible in explaining each step. Camel Inc. has 100,000...
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Please be as detailed as possible in explaining each step.
Camel Inc. has 100,000 shares of common stock outstanding. In 2017, the company had pretax income from continuing operations of $1, 400,000. The following additional items are not included in this amount. In 2017, Camel sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $36,000. The company often sells equipment that it has used in its operations. An earthquake rocked the plant in Kansas causing damage of $100,000. The company wrote down obsolete inventory and incurred a loss of $65,000. The company has two components, a yoga props division and household appliances division. These divisions have distinguishable operations. In 2017, Camel decided to sell its household appliances division. The division sold for $500,000 and the book value of its assets was $750,000. The 2017 income from operating the division was $120,000. The tax rate for 2017 is 40%. Prepare a good-format income statement by completing the following table (the highlighted cells need to be filled)
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Please be as detailed as possible in explaining each step.