P102B. Prepare an income statement (LO1)
The Blues Corporation had the following for the year ended December 31,2007.
|
Sales |
$425,000 |
|
Cost of goods sold |
185,000 |
|
Interest income |
8,000 |
|
Gain on sale of equipment |
4,000 |
|
Selling and administrative expenses |
18,000 |
|
Interest expense |
3,000 |
|
Extraordinary gain |
25,000 |
|
Loss from discontinued segment operations |
(e,s00) |
|
Gain on disposal of discontinued segment |
36,000 |
Required
Assume the corporation is subject to a 40Vo tax rate. Prepare an income statement for the year ended December 31,2007 .