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The following incorrect income statement was prepared by the accountant of the Axel Corporation: ...

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Accounting

The following incorrect income statement was prepared by the accountant of the Axel Corporation:

AXEL CORPORATION Income Statement For the Year Ended December 31, 2018
Revenues and gains:
Sales $ 740,000
Interest and dividends 47,000
Gain on sale of investments 94,000
Total revenues and gains 881,000
Expenses and losses:
Cost of goods sold $ 400,000
Selling expenses 74,000
Administrative expenses 94,000
Interest 41,000
Restructuring costs 70,000
Income taxes 80,800
Total expenses and losses 759,800
Net Income $ 121,200
Earnings per share $ 1.21

Required: Prepare a multiple-step income statement for 2018 applying generally accepted accounting principles. The income tax rate is 40%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)

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