The following items are from Taperline Corporation on December 31, 2010. Assume a flat 40% corporate tax rate on all items, including the casualty loss.
|
Sales |
$670,000 |
|
Rental income |
3,600 |
|
Gain on the sale of fixed assets |
3,000 |
|
General and administrative expenses |
110,000 |
|
Selling expenses |
97,000 |
|
Interest expense |
1,900 |
|
Depreciation for the period |
10,000 |
|
Extraordinary item (casualty loss—pretax) |
30,000 |
|
Cost of sales |
300,000 |
|
Common stock (30,000 shares outstanding) |
150,000 |
Required
a. Prepare a single step income statement for the year ended December 31, 2010. Include earnings per share for earnings before extraordinary items and net income.
b. Prepare a multiple step income statement. Include earnings per share for earnings before extraordinary items and net income.