Reference no: EM132651759

Problem - 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 $700,000

Interest revenue 43,000

Gain on sale of investments 90,000

Total revenues and gains 833,000

Expenses and losses:

Cost of goods sold $380,000

Selling expense 70,000

Administrative expense 90,000

Interest expense 27,000

Restructuring costs 66,000

Income tax expense 50,000

Total expenses and losses 683,000

Net Income $150,000

Earnings per share $1.50

Required - Make a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%.