The following incorrect income statement was preparedby the accountant of the Axel Corporation:
AXEL CORPORATION
Income Statement
For the Year Ended December 31, 2021 |
| Revenues and gains: | | | | | |
| Sales revenue | | | | $ | 760,000 |
| Interest revenue | | | | | 49,000 |
| Gain on sale of investments | | | | | 96,000 |
| Total revenues and gains | | | | | 905,000 |
| Expenses and losses: | | | | | |
| Cost of goods sold | $ | 410,000 | | | |
| Selling expense | | 76,000 | | | |
| Administrative expense | | 96,000 | | | |
| Interest expense | | 33,000 | | | |
| Restructuring costs | | 72,000 | | | |
| Income tax expense | | 54,500 | | | |
| Total expenses and losses | | | | | 741,500 |
| Net Income | | | | $ | 163,500 |
| Earnings per share | | | | $ | 1.64 |
|
Required:
Prepare a multiple-step income statement for 2021 applyinggenerally accepted accounting principles. The income tax rate is25%. (Amounts to be deducted should be indicated with aminus sign. Round EPS answer to 2 decimal places.)
