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  3. problem 2 on september 30, 20x3, the vroom corpora

Problem 2 On September 30, 20x3, the Vroom Corporation's board of directors decided to put...

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Accounting

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Problem 2 On September 30, 20x3, the Vroom Corporation's board of directors decided to put up one of their divisions for sale. The Statement of Income of the company as well as those of the division for the year ended December 31,20x3 are as follows Company (including Vsto Revenue Cost of goods sold Operating expenses Depreciation Income tax expense recovery Net income Division S45,100,000 $12,400,000 (27,400,000)(9,300,000) (10,500,000) (4,500,000) (4,500,000)(1,200,000) 1,040,000 $1,620,000(S1,560,000 1,080,000 The assets of the discontinued division have a carrying value of S20,000,000. The fair value of these assets is estimated at $15,500,000. Costs to sell are estimated at 6% of the fair value. Depreciation expense for the discontinued division was taken on its assets for the whole year. The company's income tax rate is 40%. Required- Recast Vroom's Statement of Income (in good form) for the year ended December 31, 20x3

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