Reference no: EM132804134

Sales Revenue $800,000

Pretax loss from operation of discontinued division 15,000

Cost of goods sold 185,000

Pretax gains from foreign currency translation 30,000

pretax deferred loss on derivative 50,000

Pretax loss on disposal of discontinued division 70,000

Selling expenses 25,000

Administrative expenses 45,000

Interest revenue 108,000

Loss on write-down of obsolete inventory 10,000

Shares of common stock outstanding, 10,000 shares.

Tax rate of 30% on all items

Instructions

Problem 1: Create a multiple-step income statement for Fred, Inc. for the year ended December 31, 2020 including earnings per share