he following incorrect income statement was prepared by the accountant of the Axel Corporation: ...
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Accounting
he following incorrect income statement was prepared by the accountant of the Axel Corporation:
AXEL CORPORATION Income Statement For the Year Ended December 31, 2021
Revenues and gains:
Sales revenue
$
650,000
Interest revenue
38,000
Gain on sale of investments
85,000
Total revenues and gains
773,000
Expenses and losses:
Cost of goods sold
$
355,000
Selling expense
65,000
Administrative expense
85,000
Interest expense
22,000
Restructuring costs
61,000
Income tax expense
46,250
Total expenses and losses
634,250
Net Income
$
138,750
Earnings per share
$
1.39
Required: Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
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