1. The income from operations for the Locomotive Division is:
The following financial information was summarized from the accounting records of Train
Corporation for the current year ended December 31:
Solution
a) $27,240 as shown below Statement showing computation of income of Locomotives division
Particulars Amount Net Sales                         Â
78,000.00 Cost of goods sold                       Â
(30,720.00) Direct Operating expenses                       Â
(20,040.00) Net Income                          27,240.00