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, 2021 | |||||
| Revenues and gains: | |||||
| Sales revenue | $ | 600,000 | |||
| Interest revenue | 33,000 | ||||
| Gain on sale of investments | 80,000 | ||||
| Total revenues and gains | 713,000 | ||||
| Expenses and losses: | |||||
| Cost of goods sold | $ | 330,000 | |||
| Selling expense | 60,000 | ||||
| Administrative expense | 80,000 | ||||
| Interest expense | 17,000 | ||||
| Restructuring costs | 56,000 | ||||
| Income tax expense | 42,500 | ||||
| Total expenses and losses | 585,500 | ||||
| Net Income | $ | 127,500 | |||
| Earnings per share | $ | 1.28 | |||
Required: Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
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