Indicate the deficiencies in the income statement as it currently is. Assume that the corporation...
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Indicate the deficiencies in the income statement as it currently is. Assume that the corporation prepares a single-step income statement.
AMOS CORPORATION Income Statement Year Ended December 31, 2020 Sales revenue Dividend revenue Gain on recovery of earthquake loss (unusual) Unrealized holding gain on FV-OCl equity investments $850,000 32,300 27,300 5,000 914,600 Less: Selling expenses Cost of goods sold Advertising expense Loss on inventory due to decline in net realizable value Loss on discontinued operations Administrative expenses Income before income tax $100,100 510,000 13,700 34,000 48,600 73,400 779,800 134,800 33,700 Income tax expense Net income $101,100 Amos had 100,000 common shares outstanding during the year and has an effective tax rate of 25%. Gains/losses on FV-OCl equity investments are not recycled through net income
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Indicate the deficiencies in the income statement as it currently is. Assume that the corporation prepares a single-step income statement.