[successmade]

In recent years, the outdoor tile business unit has failed to meet management goals. At the beginning of 2009, Jack Holdings PLC sold †ђξ outdoor tile business resulting in a $375,000 Pre Tax Gain. The indoor tile product sales where $10,500,000 at a Gross Msrgin of 30% selling expenses totalled $1,200,000 and administrative expenses totalled $1,800,000. Jack Holdings PLC is subject to a 40% income tax rate. Question 1; Prepare 2009 income statement assuming that management views the outdoor tile business as a distinct and separate line of business.Question 2; Prepare the 2009 income statement assuming that the outdoor tiles business is not a separate and distinct line of business.

[successmade]

In recent years, the outdoor tile business unit has failed to meet management goals. At the beginning of 2009, Jack Holdings PLC sold the outdoor tile business resulting in a $375,000 Pre Tax Gain. The indoor tile product sales where $10,500,000 at a Gross Msrgin of 30% selling expenses totalled $1,200,000 and administrative expenses totalled $1,800,000. Jack Holdings PLC is subject to a 40% income tax rate. Question 1; Prepare 2009 income statement assuming that management views the outdoor tile business as a distinct and separate line of business.Question 2; Prepare the 2009 income statement assuming that the outdoor tiles business is not a separate and distinct line of business.