Tulip Division:Long-Term Contracts: Percentage-of-Completion Method. Long-term c

Tulip Division:Long-Term Contracts: Percentage-of-Completion Method. Long-term contracts recorded under the percentage-of-completion method aggregate $6000000. Costs incurred on these contracts were $1500000 in 2006 and $3000000 in 2007. Estimated additional costs of $1000000 are required to complete these contracts. Revenues of $1740000 were recognized in 2006 and a total of $4800000 has been billed of which $4600000 has been collected. No long-term contracts recorded under the percentage-of-completion method were completed in 2007.Long-Term Contracts: Completed-Contract Method. The two long-term contracts recorded under the completed-contract method were started in 2006. One is a $5000000 contract. Costs incurred were $1400000 in 2006 and $1600000 in 2007. A total of $3100000 has been billed and $2800000 collected. Although it is difficult to estimate the additional costs required to complete this contract indications are that this contract will prove to be profitable.The second contract is for $4000000. Costs incurred were $1200000 in 2006 and $2600000 in 2007. A total of $3300000 has been billed and $2900000 collected. Although it is difficult to estimate the additional costs required to complete this contract indications are that there will be a loss of approximately $550000.Dahlia Company:Selling general and administrative expenses exclusive of amounts specified earlier were $600000 in 2007. Other income exclusive of amounts specified earlier was $50000 in 2007.RequiredPrepare an income statement of the Dahlia Company for the year ended December 31 2007 stopping at income (loss) before income taxes. Show supporting schedules and computations in good form. Ignore income tax and deferred tax considerations. Notes are not required.