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Exercise 4-5(Algo) Income statement presentation [LO4-1] The following single-step income statement was prepared...

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Accounting

Exercise 4-5(Algo) Income statement presentation [LO4-1]
The following single-step income statement was prepared by the accountant of the Axel Corporation:
AXEL CORPORATION
Income Statement
For the Year Ended December 31,2024
Revenues and gains:
Sales revenue $ 660,000
Interest revenue 39,000
Gain on sale of investments 86,000
Total revenues and gains 785,000
Expenses and losses:
Cost of goods sold $ 360,000
Selling expense 66,000
Administrative expense 86,000
Interest expense 23,000
Restructuring costs 62,000
Income tax expense 47,000
Total expenses and losses 644,000
Net Income $ 141,000
Required:
Prepare a multiple-step income statement applying generally accepted accounting principles. The income tax rate is 25%.

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