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Unformatted text preview: The trench coating product continues to be very successful. During 20X8, product sales were $7,000,000, at a gross margin of 35%. Selling expenses totaled $800,000 and administrative expenses totaled $1,200,000. Trench Coat is subject to a 40% income tax rate. (a) Prepare the 20X8 income statement assuming that management views the swimming pool business as a separate and distinct line of business. (b) Prepare the 20X8 income statement assuming that the swimming pool business is not a separate and distinct line of business....
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- Spring '11